It sounds like it needs help! How is the layout, are you happy with that and just need a fixture update or are you looking to completely reconfigure the space?

the configuration works for the limited space and we've recently replaced the toilet. I think a small, wall-hung modern sink would be a great way to open up the space in place of the traditional pedestal sink.
Where I get truly stuck is with whether or not we should rip out the tile that is behind the paneling or just replace the paneling - being a small space, having paneling could help with the wear-and-tear (especially when kiddies come along), but I feel as if it also works against the space in that it cuts it visually in half.
Also waffling between a mosaic floor vs a 12x12 tile floor.

Hi Amanda, sounds like you have a great layout. I'd love to see a photo if you're willing to share - it would help to advise on the paneling question at hand. A wall hung sink would definitely open up the space. How is the storage in the bathroom or adjoining hallway? Do you have enough space for all of your toiletries and towels?