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Yes, many types of peel-and-stick wallpaper can be used in bathrooms, especially those made of vinyl or polyester. However, its success depends heavily on the level of moisture and ventilation. In bathrooms with good ventilation, such as those with fans, it can be a durable option. Peel-and-stick wallpaper may not adhere as well as traditional wallpaper in very humid conditions. For bathrooms that see a lot of moisture, like a kids' bathroom or a full bath with a steamy shower and poor ventilation, even high-quality peel-and-stick wallpaper is likely to peel over time.

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.

Darker walls may make tight bathrooms appear even smaller, but one dark accent wall can really make a bathroom pop. Wallpaper with a dark background can add intrigue and sophistication. Still, if you’re looking to open the room up and give it a modern, airy feeling, light colors may work best for your needs. Although there are some popular and unpopular opinions, there’s really no “should” when it comes to personal design choice. 

Ideally, you want to ask the wallpaper installers you’re considering for examples of past work, and references you can call. These will prove that the installer can handle your job, make your room look professional, and will also give you some insight into the kind of customer service you can expect. Before you start calling companies, you might want to narrow down your options by finding installers with mostly positive reviews online.