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Both paint and wallpaper can work in a bathroom, provided you choose high-quality products in either category. Washable vinyl wallpapers can stand up to bathroom humidity without peeling, as can semi-gloss or gloss paint finishes. However, if you’re someone who likes to redecorate often, paint may make it easier to change colors or designs more quickly. If you want full humidity protection and cleanability, tile or stone works better.

Textured or patterned vinyl wallpaper designs are the best option for hiding imperfections. Embossed designs or faux finishes like brick, wood, or linen textures are especially effective at camouflaging dents, cracks, or uneven surfaces. Avoid smooth, shiny finishes, as they can highlight flaws rather than conceal them. 

Yes, you can apply peel-and-stick wallpaper over wood paneling, but it requires significant preparation for a good result. Peel-and-stick wallpaper has a weaker adhesive than traditional wallpaper and works best on smooth, non-textured surfaces like painted or primed drywall. Because wood paneling is often textured with grooves, any flaws in the underlying surface will likely be visible after application. To prepare the paneling, you must ensure the surface is free of cracks, holes, and protrusions by filling any indentations and sanding rough spots to create a smooth surface. An alternative is to remove the paneling and apply the wallpaper directly to the underlying drywall or plaster, provided it is in good condition.

Many types of wallpaper exist, from removable peel-and-stick options to more permanent options that involve pasting. You can also find wallpaper that you can paint over, wallpaper with a texture, and wallpaper made from various materials, such as vinyl. Some types of wallpaper are washable, which can be a great option for kitchens or if your household has small children.