What can I do with this awful paneling?

try painting it.

Are you interested on painting it?

Lightly sand it, and Paint It. You can't go wrong!!!!

You could pull it down, but that's a risk if you don't know the condition of the wall underneath. For a quick fix, just paint over it. A paint with built-in primer works well.

Paint it! I'd do warm white on all the paneling. You should choose good quality primer and paint and Behr and other brands sell an all in one so you don't need to do separate primer and paint.

I agree with E.

Can't tell by the photos. If it has grooves you can fill them in with drywall patching compound. Let that dry overnight. Next day go over the patch with a damp sponge to smooth it out. You will need to prime with a stain blocking primer like Zinnser 123 or BIN. then paint with your color. With out primer the paint will just peel off. Even the all in one paint. They don't really have primer in them just more paint solids.

Thank You! I will try that!

You can try chalk paint, as well. Sticks to everything, especially laminate. No prep. You can buy it or make your own (VERY easy) out of any paint you have. Check out this tutorial on YouTube:

https://youtu.be/TTNcF9b3m-g

Paint the paneling a medium intensity neutral color to make it less noticeable and add accessories that coordinate/compliment the color and become the focal point.

Painting the paneling seems to be the best option.