Although often called "synthetic stucco", EIFS is not stucco. Traditional stucco is often called Portland Cement Plaster, and is a centuries-old non-insulating material. Stucco consists of sand, Portland Cement, and water, and is a hard, dense, thick, non-insulating material. EIFS is a lightweight synthetic wall cladding that includes foam plastic insulation and thin synthetic coatings. There are also specialty stuccos that use synthetic materials but no insulation, and these are also not EIFS either. A common example is what is called one-coat stucco, which is a thick, synthetic stucco applied in a single layer (traditional stucco is applied in 3 layers). There is also an EIFS-like product called a Direct-Applied Finish System (or DAFS), which is essentially an EIFS but without the insulation, and has quite different characteristics.

EIFS are proprietary systems of a particular EIFS producer and consist of specific components. EIFS are not generic products made from common separate materials. To function properly, EIFS needs to be architecturally designed and installed as a system. There are a number of versions of EIFS. The most basic and common EIFS is called a barrier EIFS (also known as a traditional or conventional EIFS). Another type is called an EIFS with Drainage, which is a barrier EIFS to which a water drainage capability has been added

A basic EIFS includes only the insulation and EIFS materials (coatings, adhesives, etc.). Other types of EIFS may also include plastic edge trim, water-resistive barriers, a drainage cavity, and other accessories. The technical definition of "an EIFS" does not include wall framing, sheathing, flashings, caulking, water barriers, windows, doors, and other wall components. However, as of recently, architects have begun specifying flashings, sealants, and wiring fasteners (such as Viperstrap) as being a part of the EIFS scope of work, essentially requiring EIFS contractors to carry out that work as well. The technical national consensus standard for the definition of an EIFS, as published by ASTM International organization, does not include flashing or sealants as part of the EIFS.