Before attempting to repair ceiling paint that is bubbling and peeling, first find the source of the leak and fix it. Generally, a leak stems from somewhere on the roof, so look for loose metal at the base of a chimney or missing shingles. Repair loose metal by hammering it flat against the roof and securing it with screws, and then applying waterproof sealant around the edges. With missing shingles, you may need to repair the roof beneath before replacing the shingles.
If shingles are missing from the roof, check the surface of the roof beneath those shingles for cracks or holes in the roof surface. Push neoprene or silicone washers into holes, and spread waterproof sealant over the filled holes and any cracks found beneath the shingles. Cover the bare area of the roof by sliding the top edge of shingles up beneath the shingles above them and securing them with at least four screws each.
Once you have repaired the leak itself, you should take care to remove all water from the attic before attempting ceiling repair. While dry towels generally provide a simple means of sopping up water, if the water is substantial, a wet vacuum may provide a more efficient method of water removal. After removing the standing water, let the attic dry for a day or two to ensure no more water will drip through to the ceiling.
The first step to repaint a ceiling that has bubbling and peeling due to a leak is to remove the problem area. Accomplish this by sanding over the bubbled and peeling paint with fine-grit sandpaper until the bubbles are no longer visible and the surrounding paint holds fast to the surface and doesn’t peel when you rub your finger across it. Repaint the ceiling with a paint labeled for use on ceilings after applying primer to the surface to ensure the paint sticks.