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Peel-and-stick wallpaper isn’t the best choice to cover wood paneling. Because paneling has a textured, uneven surface with grooves and peel-and-stick wallpaper has weaker adhesive than traditional wallpaper, you’d need to do a significant amount of prep work to get the wallpaper to lay flat and adhere properly. Peel-and-stick wallpaper works best on painted or primed drywall without a textured finish.

Walls should be as smooth as possible before applying peel-and-stick wallpaper. Although you technically can apply wallpaper on textured walls, the peel-and-stick variety won’t last long without a clean, smooth surface for the adhesive to stick to. If you have textured walls, consult a pro about removing the textured finish before moving forward with wallpaper.

You can wallpaper and paint over certain types of wallpaper, but it’s usually a better idea to remove it first. Removing the wallpaper and prepping the wall before painting is a good way to guarantee a smooth finish that looks professional. If you ever have a moisture or water issue after painting over wallpaper, the paper will bubble and damage your wall. Additionally, you should never paint over wallpaper already peeling or otherwise damaged, as this will leave obvious imperfections in your wall and could lead to additional problems.

When choosing materials for finishing basement walls, consider factors such as moisture resistance, durability, and fire resistance. Opt for materials specifically designed for basement environments, like moisture-resistant drywall or cement board. Insulation with vapor barriers can help regulate temperature and prevent condensation. Consider using mold-resistant paints or coatings. 

Research and consult with experts to select materials that are suitable for your specific basement conditions and intended use. Prioritize quality and compatibility to achieve long-lasting and aesthetically pleasing results.