You take that tile OFF. This is a simple drywall repair and paint, and a new backsplash in a tile you do like. What color is the top of the vanity or it is glass? What is the color of the curtain? Purple?

No matter what, don't do a bath around the splash you hate and in no case, be stuck with the gray walls. Good grief. : )

Otherwise? You find a spa/turquoise tone and repeat in a shower curtain.

It’s such a small backsplash, if painted properly, you can make it blend in.

Agree with removing the backsplash and painting over the dreary walls. A dull off-white would brighten up this room of too many Shades of Gray. (😉)

You could replace that glass mosaic with a piece of back painted glass to match the vanity top. They could cut a hole for the outlet and you can be glass switchplates that can be back painted too. I did this on a kitchen backsplash once

IMO the wrong thing is driving the bus . Remove tha very dated backsplash and then decide what works in the spac e. I would n ix the shower curatin and do a nice glass shower screen it will make the space feel twice as big . The take pics of the whole space and we can then help with wall color and maybe wallpaper . I think the glass backspalsh would be a good choice but to do what was mentioned is expensive but some nice glass subway tile you might do much cheaper for the same kind of look.

Don't let the tail wag the dog! Removing the backsplash will not "destroy" the wall. It is an easy thing to remove that tile, along with the strip of drywall behind it, then put in a new, fresh piece of drywall.

Here are more photos, it really should be a powder room or at least a 3/4 bath (which was the original build but a previous owner put in a full bath). This bathroom is in the hallway right when you walk into our house, and when the door is open it is what you look at from the living room. I do want a shower curtain so we are not looking into a shower when the door is open. I have an 8 yr old, so the door is often open.

Also view from the living room

Sink it’s a glass turquoise color, shower curtain is gray but can go, cheap from target

Seeing the bathtub from an open doorway is better than a direct view of the toilet.

As suggested by others, I would remove the backsplash and paint all the walls in a soft white (to take away from all the gray in the room), replace the shower curtain with a white waffle weave one for some texture. If you need to replace the backsplash I suggest a white one, something like a glass & white mosaic.

Do you NEED the full bath? Because whomever did that should go to a woodshed to be tied up and lashed with wet noodles.

Thanks everyone, this has helped, get rid or backsplash!