Beadboard is a traditional style that is growing in popularity. Manufacturers provide beadboard in several different types of material, but the DIY Network recommends medium-density fiberboard, saying it eliminates the expansion and contraction of real wood.
Prepare the bathroom
Remove everything from the walls, including mirrors and outlet covers. Remove the toilet, sink and cabinet. Unless you plan to use the existing baseboard, remove it as well. If there is a window in the room, remove the casing.
Install the new base
Install the base before installing the beadboard. Lowe's recommends a special base with a channel designed especially for this type of paneling. Use a level to ensure the base is even. Adhere it to the wall with adhesive, and nail it in place.
Cut the panels
Snap a level chalk line around the perimeter of the room. Measure from the top of the base to the line, and cut each panel to fit.
Install the beadboard
Install the first panel, making sure it is level both vertically and horizontally. Use both adhesive and nails to hold in place. The use of a pin nailer eliminates stray hammer marks.
Install top trim
Finish the job by applying the top trim. If the panels run floor to ceiling, you have the option of adding transitional trim or caulking the seam with the ceiling. Install the window casing. Move outlets so the ears are on top of the beadboard, and install outlet covers.