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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.

Hanging wallpaper may seem simple, but in practice it requires significant planning and finesse to make it look professional. To start, you need to get an even application of wallpaper paste across all of your wallpaper, which requires experience and large pasting tables to get right. You also need to plan out your design and match it exactly so that you don’t have imperfections in the finished product. It’s often better to hire a professional wallpaper hanger who can get the job done properly for a clean, smooth finish.

Common mistakes when finishing basement walls include neglecting proper insulation, insufficient moisture management, and poor ventilation. Not addressing these issues can lead to mold growth, water damage, and discomfort. Additionally, inadequate planning, improper framing, and rushing the project can result in subpar outcomes. 

It's essential to follow best practices, seek professional guidance if needed, and prioritize thoroughness and attention to detail.

Wallpaper lasts an average of around 15 years, but there is some variance. The type of wallpaper matters, as vinyl wallpaper tends to last the longest—sometimes 20 years or more—while a peel-and-stick wallpaper, which is the easiest to install for DIYers, will usually only last for around five years. Exposure to high humidity, smoke, and UV rays from sunlight can also limit the lifespan of your wallpaper, as can heavy traffic in the installation area.