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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.

Peel-and-stick wallpaper is designed to be removed without damaging walls, making it a good choice for renters or temporary design changes. However, damage to paint or drywall can occur under certain conditions. To prevent issues, the wall surface must be properly prepared before application—it should be clean, smooth, dry, and correctly primed or painted. Applying wallpaper to a freshly painted surface can cause the paint to peel off during removal. Additionally, removing the wallpaper too quickly or aggressively can also cause damage. For best results, always follow the manufacturer's instructions for both application and removal.

If you prefer peel-and-stick to traditional wallpaper, you can skip the priming process. Many manufacturers don't require an additional primer if you’re installing peel-and-stick wallpaper to painted walls. However, if you’re applying peel-and-stick wallpaper to unfinished drywall, you’ll need to apply a primer first.

The average cost to install or hang wallpaper is around $575 per room or project, with typical prices ranging from $200 to $1,500. Costs can be higher for custom or luxury products. Since project size varies, it's often helpful to estimate labor costs per square foot, which generally fall between $1 and $7, with an average of $4 per square foot. The total cost depends on several factors, including the quality and type of wallpaper, the size and type of the room, and whether old wallpaper must be removed first. Opting for less expensive materials like peel-and-stick wallpaper or choosing to do the installation yourself can lower the overall cost. For the most accurate estimate, it is best to have a professional inspect the space and provide a quote.