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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.

Many types of peel-and-stick wallpaper can hold up to environments with some level of moisture, such as bathrooms—especially peel-and-stick wallpapers made of vinyl or polyester. However, if you’re considering wallpapering a bathroom that sees a lot of moisture, like a kids’ bathroom or a full bathroom with a steamy shower and inadequate ventilation, even the highest quality wallpapers will peel.

While you technically can put wallpaper in a bathroom, it doesn’t mean you should. Bathrooms are high-humidity areas, but if your bathroom is well-ventilated, it can work, especially depending on the placement. If the wallpaper is installed away from direct water contact, like a vanity or accent wall, it will hold up better than if it were directly next to the shower. 

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.