Cover bathroom fixtures and floors with drop cloths to protect them from paint spills.
Sand any glossy areas of the Masonite walls with 120-grit sandpaper until they are dull. Use a sanding block or palm sander and a light touch to prevent gouging or removing too much material.
Coat the Masonite walls with a wood water-repellent product. Bathroom walls are subject to mold and mildew from excessive moisture, and Masonite is water-resistant but is not waterproof. Follow the product's directions for drying time.
Paint the walls with one coat of a high-quality primer. Allow the primer to dry thoroughly before painting.
Apply two coats of a high-quality latex paint. Two thin coats will adhere to the wall better than one thick layer of paint. Allow the first coat to thoroughly dry before applying the second coat.