No

A random bit of shiplap will visually fill what seems to be a small space as it is. I suppose adding the wall closed it in quite a bit. I would have lightened the area by removing all the paneling and using a lighter color. I suppose the paneling takes more abuse than a dry wall would and that area will take it's knocks and knicks. The floor is all the dark that space can take.

Unless you have a waterfront property, shiplap as a trend is over and will date your house. Why didn't you just didn't remove the paneling where you have the issue? Sometimes it's glued, sometimes it's nailed (hope for nailed) but in any case, just pull it off and patch the wall. If DH has the ability to spackle, sand (repeat) the old paneling he can certainly fix the wall after removing the paneling. If it is glued on and removing it causes substantial damage to the drywall, cut out a section and replace it. The big box stores sell various sizes of drywall for patches.

Appreciate the input! It was dim outside when I took these earlier this morning, but the floor actually isn't as dark as it looks in the photos - it's nutmeg on red oak so a medium brown. We're doing the renovations ourselves and were trying to avoid having to rip out and replace with drywall, hence the (failed) experiment haha. The paneling would not have been my top choice, but painting it dark helped and its great for kid fingerprints and abuse! We have 5 🙃🥴

No shiplap. With 5 children I would be more concerned about the lack of a hand rail going up the stairs.

I'm confused by this space. Why is part of the floor black? Maybe it's the angle of the photos?

Not.

Shiplap really only works in a country-style or farmhouse. You could, however, put some wainscot in the entry and stariwell.

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No. Is there black carpet on the steps going to the lower level? I agree rrah, the black thing on the wall along with the black carpeting is confusing.

Sorry you do not like the grooves but you want shiplap that has grooves . IMO the shiplap ( I use the term loosly) ship has sailed long ago not matter what you see on HGTV.I see no way to add any kind of trim but you do need a handrail so put that there paint with a good kitchen type apint the handrail should protect the wall somewhat.

So here's some more pictures - a better one of the floor color and a couple of different angles of the split entryway.  And then a couple of the other recently finished renovations we have done  - the mud bench and the bathroom.

No black carpeting, just the angle.of the photo.

The hand rail is definitely going back in.  We removed to refinish the steps.

 I don't mind grooves but I do mind paneling everywhere. This house was built in 1973 and there was paneling everyyyywhere. We removed a lot, but didn't want to get into removing in the entryway. My husband experimented with filling in, but it didn't turn out like we had hoped. I wish we had just painted it from the start, but we didn't and now the wall looks funky. I'm trying to decide if I should just live with it for now, or if we should do shiplap which would cover the wonky wall nicely. I'm just not sure how it would look and if we do the half wall, then if we need to carry over to the other 2 walls in the entryway.

No shiplap, no paneling. Bite the bullet and rip it out.

Perhaps anaglypta wallpaper? It's textured and can be painted. It hides a multitude of wall problems.

Another vote of no shiplap. The additional pics really help with figuring out what the black parts in first pic really are. Nice job on stairs & the entry bench set up. Nelliebean’s idea of wallpaper to cover the wall where you tried filling in the paneling groves is a great one. I think it’s either that or remove the paneling & repair wall if needed. Adding shiplap is another layer of lines and texture on top of the painted paneling & the pattern on stair risers - both of which look great. But adding shiplap is more lines & horizontal ones at that. Way too much. So, back to wallpaper & lighter color of paint.

I think "shiplap" is basically horizontal v-groove paneling, which I wouldn't add to the mix in your space. You already have vertical paneling and board and batten (in the downstairs mudroom). Is it possible to cover the paneling with drywall and just paint it? I would also add a simple skirtboard along the steps to finish off the drywall. (see example below)

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While many here do not like shiplap (myself included), you clearly do. You have it and other forms of modern farmhouse charm throughout your basement. Unless the style of your basement is a total departure from the rest of your house, I think it would go well with your own style. And your own style is what is important. I'd live for a while with what you have and perhaps once you are in the swing of daily life you won't be as bothered. But if it still gets to you, then shiplap it is.

I would take out the paneling, or at the very least paint it the same color as the rest of your walls. It looks off as is.

@kendrah thank you for the thoughtful response! I do tend to lean some towards modern farmhouse. The only shiplap I have thus far is the one wall in the bathroom I shared. I do think I will live with it as is for now. I'll hang the full length mirror and maybe a couple corner shelves.  We will be starting the upstairs renovations next, so maybe I'll see what style that takes on and come back to the entryway :)

@KW thanks so much for your thoughtful response! You're right about the adding of another layer of pattern/lines to the entry. I'm going to live with it as is for now. We start our upstairs renovations next, so I'll see how that goes and come back to tackle the entry :)

@nelliebean I didn't know this existed!  Will look into it.  Thanks!

I think it looks good already. I like shiplap but would not add another element to this space.