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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.

For the most part, peel-and-stick wallpaper doesn't damage walls. However, there may be some cases when damage does occur. For example, if you try to rip the paper off the wall, you may pull away some paint at the same time.

The walls can also be damaged if they aren't prepared properly before you add the wallpaper. For example, if the coat of paint is too fresh when you put the wallpaper on the walls, it can peel away as you remove the paper. 

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. 

Your peel-and-stick wallpaper can fall off for multiple reasons, including high humidity levels, extreme temperature changes, poor installation, and even the wall surface. Textured walls can prevent the adhesive from fully sticking to the wall, making it more likely for the wallpaper to peel off. Low-quality wallpapers with weaker adhesives are also more likely to fall off prematurely.