Yes! In fact, you can even hang over wall tile, brick, cinderblock and textured walls. While there are a number of methods, the simplest is to use what is called lining paper. This is a special type of blank wallcovering stock that is hung over the paneling (or tile, etc.) to provide a smooth surface over which your regular wallcovering is then hung. Your local independent retailer usually carries lining paper and can provide complete instructions. You’ll be amazed at how much brighter a paneled room will look when the old, dark paneling is covered with wallcoverings.