Remove the furniture from the room. Vacuum the wood paneling to remove any dust or dirt from it using a vacuum hand tool.
Sand the paneling using a mechanical sander with a coarse grade sandpaper. Make smooth up and down strokes on the paneling. Overlap each panel so you do not miss a spot on the paneling.
Sand the corners around the paneling using an orbital sander. Remove any sanding dust from the floors and paneling using your vacuum.
Repeat steps 2 and 3 with a medium grade sandpaper to smooth out the paneling. Remove the remaining dust from the floor and paneling using your vacuum.
Leave the paneling for about an hour so the dust will settle, then use a wet rag to clean the paneling.
Apply the stain with which you want to refinish the paneling using a long paint roller. Dip the roller into the stain and then roll the paint roller along the paneling. Wipe up excess stain from the paneling using a rag.
Allow the stain to dry for about 10 hours. Apply a varnish to the paneling with a new paint roller and allow the varnish to dry for another 10 hours.