How to best prep dry wall for backsplash tile?

Hi all. I'm installing a new kitchen backsplash 
(mesh backed glass mosiac tiles). I've removed the 
old white tiles at this point and the drywall is 
down to the paper in most spots (some holes need 
repaired). My question relates to how to prep the 
dry wall for the tiling. Do I get the drywall 
repaired, smoothed, and then lay down some sort of 
compound/thin set, let that dry, then lay down the 
tile adhesive and tile? I'm thinking I can't lay my 
compound adhesive directly on the papered drywall, 
hence my question on how to best prep the dry wall 
for tiling. Thanks in advance!