What can you do with dark paneling to update it?

paint

White wash it.

My 2 favorite whites to brighten a room are by Farrow & Ball- White Tie and Pointing. If this paint is out if your budget take a paint card of these colors to match at your local paint store. You may need to prime the paneling first to block the tannins from bleeding through. You will also use less paint if you prime first.

You can also add a gallery wall- give it some character

I've painted panelled walls & highly recommend it. Wash the wall thoroughly & dry. Check for any popped nails. I removed then added new painted molding at ceiling & floor. Prime all, then paint all indented lines 1st with brush. Use a roller for the rest. You may need 3 coats. Made a huge difference in my bedroom. Also, my friend wallpapered one wall to make it a feature in her dining room. She removed the ceiling & floor trim, primed the wall 1st & then papered it. She replaced the new, painted trims. Mirrors hung on the wall make her room look stunning.

I agree with painting it. If the paneling has groves you can fill them with drywall patch compound. Let it dry overnight. Next day go over the compound with a damp sponge to smooth it out. Prime the paneling with a good stain blocking primer like Zinsser 123 . Then paint.

Yep, you can paint the paneling for a nice update. We just used a roller.

Paint it. No need to try to cover up or fill in the grooves---grooved painted panelled walls look great. If the wood surface is shiny, I would apply a coat of primer before painting. Then use a brush to get the paint into the grooves and roll on the walls. Good luck!