Is there a spot where you can remove the wall-Formica stuff to see what is behind it? Maybe you can use a stain-killer and paint the walls. I know some people paint tile as a temporary solution, but if you can live with the yellow (it’s not a gaudy yellow), you could paint the upper walls white, clean the yellow tile and grout, and add cheerful yellow-print curtains for the window. The flooring looks pretty good in your photo.

I don't think the tiles are awful. Bring in some accessories that are the color of that stripe. If you can't remove the formica, maybe you can cover with vertical shiplap or board/batten type paneling? Or even a peel/stick wallpaper may work well in this situation. Could do something really fun.

You mentioned new hardware and appliances. Stainless would be a nice update with brushed nickel hardware.

You’re doing great so far! Does the paneling match the peninsula countertop? If you take it down, there’ll surely be a lot of repair to be done and who knows what else. Wallpaper might be your best bet. The good news is, you can find something to embrace the cute vintage tile!

Wondering how old your house is? The formica and the tiles seem to go together...formica panels being used since the early 30's...

You may just need a different perspective on the whole look :)

@felizlady I haven't been able to get it down. It seems like it is superglued to the wall. I know from the top of the wall that it covered by the drop ceiling that the walls are made of plaster. I can deal with the tile for now but good idea to clean the grout.

@gargigg, I considered shiplap but I was worried about the area close to the stove. Also, above the cabinets, I thought it may be too much going on with cabinets, shiplap and then the drop ceiling tiles. I have considered painting it, but I can't get paint to adhere. I can also try to incorporate the stripe color, I hadn't considered that.

@Sophie the peninsula does match :( I considered getting it replaced but granite or quartz would be too fancy for the rest of the kitchen. I've been debating about butcher block.

This house was built in 1925 and while the character is what attracted me, it is also proving to be the biggest challenge. Thanks for all of the feedback!

Spray paint made for plastic might work. But you’d need a sprayer or a pro. I like the butcher block idea. IKEA super affordable. You’re removing the curtains?

@tatts & Weathy. I plan on doing new window treatments for sure. The are sort of up as place holders until I figure out what I am going to do. I am thinking Roman shades to add more color and a design element with the fabric.

I hadn't thought about spray paint before, but I will now.

As for the lighting, ideally, I'd have recessed lights and pendant lights over the peninsula but since I don't have an ideal kitchen, I'm going to work with what I have. My main complaint is that the current light is SUPER bright and gives a sterile, hospital like feel. I am hoping that color and accessories will give it a warmer feeling.

Courtnei, when you tried painting the Formica walls did you test it using an appropriate primer first? Something like the Kilz product below should provide a good base for painting.

I'd focus on the overhead light and window treatments. Everything else you have already improved tremendously.

Ya know, those walls with Formica and tile are danged easy to keep clean!

What about beadboard panels? They're pretty cheap and easy to put over tile. You can paint them any color you like.

Would you like a dishwasher? An 18 inch wide dishwasher could replace one of the lower cabinets.

I love older homes like yours. Mine was built around 1917 and has been an adventure to diy update with minimal funds. I posted last month about moving my sink over and you can see what it looks like. I think your kitchen has a ton of potential. I'd put some floating shelves high above the stove to give that area a bit of storage and make it look visually appealing. What's your style? Rustic, farmhouse, modern, transitional? Might also help us give you more ideas.