Determine the type of stone siding you want for your home. Some types lend themselves to even, brick-like courses, whereas others create a more random stacked look.
Apply mortar to the back of a siding stone. Place the stone on the bottom edge of the wall and gently tap it into place with a rubber mallet. Continue applying mortar-backed stones along the bottom edge of the wall to finish the first course.
Cut stones for the vertical edges of the wall with a circular saw equipped with a masonry blade. Apply mortar to these stones and install them at the ends of the first course.
Continue installing courses until you reach the top of the wall. Cut the stones for the top course to fit with the circular saw and masonry blade before applying mortar and installing these stones.
Apply grout to the joints between the stones with a grout float to give the siding a finished appearance and to prevent moisture from damaging the exterior wall of the home. Wipe away any excess grout with a damp sponge.