I was thinking something gray, but I've stated too long and am unsure now

No gray. That wont go with your tile. Please remove all that wallpaper. Scrub down the walls to remove the glue, and then primer it with gardz primer to seal in any left over residue, so that when you paint, the paint will actually stick to the walls. Then post new pictures, and you will get better answers.

I’m don’t the grey paint works. Is new wallpaper an option? I think Serena & Lilly have patterns/colors that would work with your tile.

https://www.sessions.edu/color-calculator-results/?colors=e0b3e0,e0e0b3,b3e0b3,e0b3b3

Something to think about.

The tile just seems beige. You have some interesting art work that you must enjoy. Is there a color to pull from there?

There is a brown undertone in the tile (as I see it n my monitor).

Instead of gray, consider a taupe with strong brown undertones.

This is B.M. 1008

Keep the room feeling brown.

Yes to brown/tan/creams and absolutely no gray. You will find that you can make an elegant room in these colors, too. If you go for a darker color on top, you may want to add light. DALS makes ceiling lights that seem like can lights, but they fit into the depth of standard drywall and are wet area approved, so you can put one over the tub, too. All you need for these lights is an electrician to run the wire to the self-contained fixture (no blue box needed behind it) and to a wall switch. Check them out. https://www.build.com/dals-lighting-5006-cc/s1763172?uid=4163442

I really like the tree shadows picture that Judy posted. You can get wallpapers with this theme, too

My first thought was soft pink or ivory:

This blog post about "vintage pink" might inspire you as well:

One tip though: try finding a paint colour match with those paint matching apps BM and SW have. Then you can see on their website what coordinating colours they recommend.

I see a warm pink with soft brown it on my screen. Wouldn't look at clear blues or cool greys. In any case, looks like a nice colour and the tile looks to be in great shape.

Ooh...google calamine pink. I swear to you that your tile color is totally "in" and gorgeous. I just added it as an accent in a small bathroom, and used this sconce.

The gray on the right in your photo would work, but in a small bathroom, I wouldn't chop the walls with gray on top. I'd go for a paler pink above, charcoal gray on your window trim and ...brass!

I'm seeing a lot of English interiors using pink, even in their kitchens. Here's a grey and pink example, and two of the paint colors they used with it.

English kitchen

https://www.remodelista.com/posts/steal-look-plaster-pink-kitchen-bath-england/

Farrow and Ball "Slipper Satin"

Farrow and Ball "Mole's Breath"

Soft pinky-beige colors work nicely in a room like this. Take a look at colors like Benjamin Moore's Tissue Pink, Opal, and Summer Peach. The grays you selected are both too cool-toned and too dark for that space.

I have a bathroom in a very similar color scheme with peach fixtures. Embrace it! You can take a look at retrorenovation.com for some design ideas that work with this color tile.

Fortunately, colors in the pink/tan family are trending in design right now, so you should be able to find items that work relatively easily. I recently bought this shower curtain, which complements my tile and fixtures perfectly:

The tiles do appear to be in great condition, as well as the grout! I think a creamy white/ivory would be nice. The BM Ivory White seems fresh. Can even use a satin version for window trim. Then maybe bring in some brown with wooden/bamboo roller shade— nothing fussy. And then one piece of art that combines all the colors. Maybe an abstract. Antique brass frame and lighting (if that’s changing too)

tartanmeup, the kitchen wall color is Setting Plaster! They used Slipper Satin as an accent. So, so pretty.

Thank you everyone for all the valuable information and direction. We are going to start removing the wallpaper tomorrow. I still haven't decided on a color, going to finish looking into all the information/inspiration everyone has left me here. I'm adding another pic that shows the tub, it's the same color as the tile, as are all the walls of the shower. (no I don't plan on using the shower curtain that's up, just up while I wash my usual and will be redecorating once all is said and done ) thanks for all the help. also adding a pic of the floor, it's light colored gold.

I like it. I like the cabinet too. I think you've been given really good advice here. I would not be tempted at all to take out that tile.

Thanks for the additional pictures. Gotta say, I would have been thrilled to have this vintage bathroom in my house. Even the vanity and counter look to be in tip top shape. Bathrooms are one of the most expensive and disruptive rooms to remodel. Working with quality vintage elements can be such a huge time and money saver!!! (Btw, I love the skirted toilet. Not vintage, I know. :) Could you share the brand? It looks to be on the compact size which is what my bathroom needs.)

The flooring is sheet vinyl? Usually easier upkeep than a tile floor. More comfortable underfoot too. The vintage pattern is subtle and the colours are harmonious with the dusty pink tile. If it's in good condition, I'd totally let the flooring and tile determine the colour palette: dusty pink, ivory and gold. The vanity looks to be in good shape as well. If its storage worked for me, I might consider changing its hardware if the current handles didn't feel comfortable in hand. (Hard to see in pictures but the shape of these door handles remind me of those thin vintage metal handles with edges that feel sharp in hand.) If they're comfortable though, I'd just see if a bit of polishing would work. I'd want a subtle gleam for the hardware.

Three other elements I'd consider in this bathroom:

1) Lighting: Is it optimal? You might want to assess the quality of artificial lighting in the space (does it cast a yellow light on everything? Is it positioned to flatter?) and upgrade if budget allows. Decide on the lighting situation before painting the walls because you might want to install wall sconces. (Straight on light is more flattering and functional than overhead light. The lack of casted shadows is appreciated when shaving and doing makeup, for example. ) Btw, the current light fixture makes sense style-wise in this bathroom but you certainly could consider a different style direction if you wished.

2) Window dressing: I love the unparalleled light control and privacy blinds offer but these look at bit "heavy" and utilitarian in this room. Depending on privacy needs and budget, I would consider something softer. Maybe privacy film and soft curtains? Plenty of options. Depends on your style direction.

3) Storage: A recessed medicine cabinet is a treasure in my books. A hinged mirrored cabinet door could be made for this one. If you don't like the look of the wood vanity, you could probably paint it. Or even sand and stain it, depending on the quality of the wood.

I'm tempted to search for pink and gold bathroom images but I'm rushed for time. Besides, by the time I hit submit on this comment, I'm sure 10 other comments will have been posted. I do ramble. :P

@tartanmeup We are definitely trying to work with it, just want to bring it to life and not have it look so blah. We have a 2nd bathroom that was all blue , the entire frame of the stand up shower was all tile. let me tell you, it was an insane amount of demo, took us days. Not looking to do that again.
The toilet is made by Swiss Madison, purchased it of Wayfair . We love the size as well as we are not tall (5'3) and it's comfy/ easy to clean with the skirt. The seat cover pops off to clean it as well.

I believe the floor is sheet vinyl, it's all one smooth sheet, I agree it's very easy to wipe up or even just mop over quickly. I actually like the print, I love gold and it has a nice sparkle.

The vanity isnt in bad shape at all, one of the drawers is a little squeaky, but can be addressed. The hardware is all copper and actually hasn't been a problem at all, it needs a good cleaning. The same hardware is also on the kitchen cabinets, which appears to be made of the same wood. maybe oak? I have no idea.

The lighting isn't terrible, could probably be improved, I like the idea of sconces and like the gold. In my 2nd bathroom we chose a midnight blue vanity and ran with the gold and I love it .

I will see what I can't do for the blinds, we purchase the house mid pandemic and had to move in the day we closed so we just picked up blinds for the bathroom and bedrooms just to get by.

I have been looking at recessed medicine cabinets, most are much larger , which I like, but I'm not sure what the situation is in the wall. I've also found that there are much prettier mirror options, but don't want to loose that storage .

I don't hate the way the vanity looks and thought about staining it, but I'm tackling one battle at a time. We are doing just about everything diy and with 3 small kids so it's been crazy. For now I think it just needs a good scrub. We are planning to add a new sink though. I will post a picture of the one we are looking at. We wanted a vessel one, but not a huge one. I like the idea of sticking with the ivory/gold colors, but am terrified to pick a color, I keep staring at colors and can't decide .

I think you should leave the sink. It actually goes well with the bathroom, and appears to be in good condition.

Agree with cat_ky, I'd keep the sink as well. I mean, change it if you must but that would be low on my list, especially if this pink one is in good condition. (In my house, the new sink that replaced a vintage one chipped after less than 5 years.) I'd spend my money and energy elsewhere like lighting (sconces might need an electrician?) or a luxe shower curtain. Maybe change the faucet to a one handle type if you prefer the ease of use of those? Just make sure the base covers the same span on the sink as the current one.

Thanks for the toilet brand name. We have a skirted one from Foremost but it's comfort height and massive in our small ensuite.

Once you remove the wallpaper, paint and decorate, it won't look blah at all!! The wall above the toilet is huge and screaming out for a fun print to make you smile. That might be your inspiration starting point. :) No need to be terrified of any colour. Decor isn't permanent. If you don't like it; you can change it down the road. Just heed your budget and energy (both mental and physical) limits.

Best wishes. Looking forward to your "after"!

Looks like you and I are bathroom twins, I have the exact same layout right down to the baseboard heater under the window and peach fixtures with gold speckled counters. I also have a blue bathroom :-)

I'm obviously biased, but I promise you that if you work with your bathroom rather than trying to fight and modernize it, your efforts will be worth it (and hey, you'll save a boatload of money!). I'm not surprised it took a lot of work to demo the tile in your blue bathroom, old mud set tile is super sturdy.

And please, please keep the current sink! If you aren't doing a gut job, its sweet round shape and vintage look fit perfectly with your other fixtures. I think it will just give the effect of plopping something brand new in a room full of otherwise vintage fixtures. Vessel sinks are also very trendy and can quickly look dated. Your current bathroom is "dated", but in a way that is cohesive and is now sought-after vintage. You'll also need a new countertop if you buy it, which will probably lead you to want a new vanity, which might affect the flooring and/or the wall tile... if you give a mouse a cookie, you know?

Take a look at the shower curtain I've posted above, I really think it will go perfectly in your bathroom.

Found this shower curtain on Anthropologie:

Fabric shower curtains can get pricey. Society 6 has oodles of shower curtain options on sale now. If you want to go the custom curtain route, Spoonflower has zillions of printed fabrics.

I'd start with either the wall art or the shower curtain as the decor inspiration point. You might find a busy floral curtain that makes your heart sing and serves as jumping off point. You might prefer a solid colour with a subtle pattern... once you start looking, you'll have a better idea of which direction resonates with you.

Curtains on Spoonflower:

More spoonflower fabric: