Cover the blemish up by placing a piece of furniture in front of it. If the blemish is higher up, consider building some shelves. Set a few books or knick-knacks on the shelves to hide the blemish.
Hang a cork board or white board in front of the blemish. Family members can use the board to keep track of activities and upcoming events, while the board keeps the blemish hidden.
Scrape away peeling paint with a paint scraper if you don't want to hide the blemish with objects. Prime and repaint the area so that it matches the rest of the wall.
Fill the blemish with a joint compound if the blemish is a crack or crevice in the wall. Prime and paint the area so that it matches the rest of the wall.