To cover or decorate a surface with wallpaper. They decided to paper the living room with a floral design.
To conceal flaws or disagreements by superficially covering them, typically in the phrasal verb "paper over". Management tried to paper over the differences between the teams before the merger.
To plaster or litter (a place) with posters, flyers, or other sheets of paper. Activists papered the city center with campaign posters overnight.