Insulation panels made of organic, combustible materials are frequently used in the exterior thermal insulation systems (ETIS) for buildings. Such combustible insulation panels have been involved in several catastrophic building fires in recent years in China. One potential strategy to mitigate this fire hazard is to limit fire spread over the ETIS. The present work evaluates the effectiveness of vertical fire barriers in inhibiting fire spread over exposed insulation walls made of expanded polystyrene (EPS) panels. Reduced-scale experiments were carried out indoors using EPS panels with or without two vertical barriers made of non-combustible mineral wool, the fire started at the bottom center of the middle panel. The interval and width of the barriers were varied systematically, while the temperature distribution on the wall, the radiation heat flux from the fire, and the infra-red (IR) images were recorded. To demonstrate the validity of the concept, an outdoor, full-scale experiment was carried out using a 7-floor building. Our reduced-scale experiments showed that the installation of two vertical fire barriers successfully stopped the lateral flame spread, decreasing the peak temperatures of the two side panels by about 300°C for all barrier configurations tested. When barrier width was fixed at 5cm, an increase of the barrier interval from 30 to 90cm led to increases in the peak temperatures, radiation heat flux, and the maximum rate of upward flame spread. By contrast, when barrier interval was fixed at 90cm, an increase of the barrier width from 2 to 5cm had little influence on the combustion dynamics of the middle panel but the peak temperature on the side panels dropped, consistent with the smaller heat transferred with wider fire barriers. In the regions of the side panels next to the barriers, pyrolysis and deformation could be observed with barrier widths of 2 and 3cm, but not 5cm. Finally, our outdoor, full-scale experiment demonstrated that a 30cm wide vertical barrier made of air-filled cement successfully stopped the lateral flame spread over exposed EPS wall. The study highlights the effectiveness of vertical fire barriers in preventing the lateral flame spread over the exposed EPS insulation wall and provides another option for enhancing the fire safety of the combustible insulation systems.