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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.

Wall panels offer functional and aesthetic benefits. From a practical standpoint, panels can improve your home's insulation and energy efficiency, especially if you opt for solid wood panels. They can also help protect your existing wall.

Aesthetically, wall panels have a knack for adding dynamic texture, warmth, and sophistication to a room. And thanks to their many different shapes, sizes, and styles, wall panels can elevate a wide variety of home designs.

Finally, it’s relatively easy to cover wall panels, so you have some flexibility if you end up not liking the look over time.

Having dated, peeling, or otherwise damaged wallpaper can decrease the value of your property, so removing that before listing your house is nearly always a good idea; however, since wallpaper tends to be a personal style choice, potential buyers may or may not love your aesthetic as much as you do.

Love the look of wallpaper but want to consider property value as well? Stick with something that is easy to change. If you are thinking of selling soon, make sure your wallpaper hanging is on-point and looks professional with no crooked seams, evenly matched patterns, and minimal bubbling or other imperfections.

In most cases, it is not recommended to wallpaper over existing wallpaper, as the success depends on the type of paper already on the wall. While you might be able to cover non-coated wallpaper, you should never apply new wallpaper over a vinyl-coated one, which is more common. Doing so can lead to poor adhesion, resulting in bubbles, imperfections, and peeling. It can also trap moisture, potentially causing hazardous mold growth between the layers.

Even if the existing wallpaper is suitable, experts recommend applying only one new layer. Adding multiple layers (more than two total) can cause significant adhesion problems, leading to warping and bubbling. For the best results, the recommended approach is to remove the old wallpaper and all paste residue before hanging the new paper. If you are unsure about your wallpaper type, consider consulting a professional.