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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.

No, you don’t always have to remove old wallpaper before applying a new layer. However, you should pull off the existing wallpaper if it’s cracked, peeling, or in poor condition. We’d also recommend against putting wallpaper over textured or dark-colored wallpaper because the old layer may be visible through the new one. In addition, if you try to hang new wallpaper over vinyl-coated wallpaper, the adhesive might not stick properly. 

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.

Once again, contact with moisture is the culprit here, though water-resistant varieties of wallpaper are less likely to become wet and develop mold. Using a high-quality exhaust fan or dehumidifier and leaving the doors or windows cracked after bathing will keep this issue at bay.