What if you did dark gray walls, probably white floors, hung some narrow, light gray towels with narrow light blue accent towels, and replaced the mirror with one with similar lines to those on the sink and bathtub?

I agree with JTHURSTON - grey and white is the way to go. I absolutely love the look of the white with the blue tile, though - were this my space, I'd leave the walls be (or just touch them up) and work on that floor. Congratulations! (Oh, and love the "action lines" on the fixtures, too - really a sweet space!)

I love that blue...I'd be tempted to match the walls in the same blue, and add loads of white accessories-towels, white coral etc and chrome hardware. For the floor, I'd be looking at a dark, wenge-wood type stain color. Add bathroom-friendly plants for a shot of freshness, and if you can fit in a small free-standing cabinet or similar, pain it a clear, cilantro green.

But please bear in mind I'm a little obsessed with blue & green tones (can you tell?); I'm sure it will be gorgeous whatever you do.

I'd say throw down some white peel and stick tiles and you'll like it 1000x more.

For some reason, that shade of blue makes me think of the ocean, which puts me in the mind of clean crisp white plus classic navy, with some bright spring-green pops of color. Given the small space, I'd be inclined to go light (i.e., white) on the floor and walls, and add the navy and green via accessories (towels, bathmat, accessories). Or maybe white and navy stripes on the walls?

Wow i will be interested to know what you decide - i have exactly the same dilemma with my bathroom's blue tiles which I both love as an original vintage feature and loathe for their blueness! I think charcoal grey sounds good - it is my new neutral elsewhere in my home, but so far i have stuck with the original white. Good luck!

What a great bathroom. I love those bright blue tiles. I think the gray suggestion was good, but it might be more of a sedate look than you are going for. Also, keep in mind that gray is not the most flattering color for a bathroom! If you go that route, I'd definitely recommend a full-spectrum gray, which might help minimize any ashy reflection on your skin.

I'm not a white walls person, but in this case that tile is so bright, and white walls will really make it pop. The navy/green combo somebody suggested would look great. I also think a bright yellow would really complement the blue.

Any color on the walls might be too much. It looks like you have a ton (!) of space on the one side of the bathroom though, to really bring in some other bright colors through furniture or accessories.

I was watching an old episode of Queer Eye the other day, and the decorator painted a bathroom with similar tiling. He chose navy and my jaw dropped. Having spent my first 20yrs in a baby-blue tiled bathroom I couldn't believe how great the navy looked. I had always leaned towards pastels and brights, but that navy made it feel tailored and masculine in a way I loved.

I love the idea of doing a dark wall (navy or maybe even a charcoal grey), and white floors. It'll give the room a really terrific ombre effect make the tiles pop and make it seem like the floor is levitating. Use bright accessories to add more color- I'd go with pops of yellow and green (vases, knick knacks, window dressing).

I think apple green would look lovely, with navy and white accents. Beautiful bathroom -- congrats!

White flooring will look very pretty but keep in mind that you will see EVERYTHING on it and you will have to sweep the floor a lot to make it look good (not sure if that would bother you). For that reason, I would try to find something grey-ish for the floor. Or maybe a faux finish? There was a post about faux bois a while ago which would look amazing in that bathroom - you could do it in navy and white!
Here is how I think you should pick the colors: go to a big box store and take a paint sample of every color you like and some you don't like all that much - blues, greens, yellows, purples, teal, greys...take different shades too, from pastel to dark, take them home with you and hold them up against the tile and then see which one pops. Then paint just a part of the room in the color and see how it looks in the light. You might want a different color behind the mirror, somebody made a good point about flattering skin tones. Unless you are going with navy on the walls, I would go darker with the floors, maybe even charcoal grey - or the navy + white faux bois finish, did I already say that I think that would look amazing?

That bathroom looks like it's from those old tin dollhouses from the 1950's. Especially the sink and tub.
Post pics once you've completed!

I have the same bathtub. It's original to my house, which was built in 1948.

Another vote for grey walls and white floors. It's a cute bathroom already but a little work will make it a knockout. Please share 'after' photos!

What are you going to put in the empty space? A built-in unit for storage and a little seat under the window would be wonderful and probably not too expensive.

I am with MADAME SUGGIA I would paint the walls the same blue much more dramatic and the monotone is soothing. You could do white floors or teak stained wood.
I would go with teak and or moraccan accessories. Hang morraccan pendents and a silver framed mirror and a teak bench and bath matt with plush white towels or turkish towels, white linen lace long curtain or a screen over the window like this-
http://www.deliashades.com/shades/index.php

ladder for towels
http://www.vivaterra.com/bed-bath/bath-accessories/bamboo-ladder.html
bath mat
http://www.vivaterra.com/bed-bath/bath-accessories/teak-bath-mat.html

Do a image search for all blue bathrooms, the ones with a bit of wood are nice-
http://www.google.com/search?tbm=isch&hl=en&source=hp&biw=1024&bih=632&q=blue+and+green+bedroom+ideas&gbv=2&oq=blue+and+gre&aq=5&aqi=g10&aql=1&gs_l=img.1.5.0l10.1481l5459l0l8811l12l12l0l3l3l0l125l908l6j3l9l0.egsbsh.1.#hl=en&gbv=2&tbm=isch&sa=1&q=blue+bathroom+ideas+pictures&oq=blue++bathroom+ideas&aq=1&aqi=g2g-m8&aql=1&gs_l=img.1.1.0l2j0i5l8.34123l34123l0l36816l1l1l0l0l0l0l119l119l0j1l1l0.egsbsh.1.&pbx=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.,cf.osb&fp=3b89d1a6df0c921d&biw=1024&bih=632

These moraccan inspired pendents would be lovely, with one similar style mirror than use teak bench, etc.

http://www.vivaterra.com/accessories/candles-lights/silver-moroccan-hanging-lamp.html

Anyway I love the blue lucky you just play it up.

A lot depends on whether you like the color of the tiles, or not. If not, and it's a temporary fix, you could paint them white, or another color. Then, you wouldn't be constrained by the color you don't like. Just ask at a good paint store what kind of primer to use. This won't last forever, but it will get you through a few years.

But if you like the tiles, find a color scheme in a fabric or painting or even a printed towel or mat or shower curtain that contains some of the tile blue color, and pull the colors from that. It's much easier to do it that way than to choose a color and then go looking for stuff that goes.

.

Coral walls + white floor = gorgeous. A few to consider:

http://www.flickr.com/photos/champagnechic/1262947407/
http://www.86073.com/UploadPic/2011-4-1/2011413132442527.jpg
https://lh5.googleusercontent.com/-5Sn_4RGiRFc/TXj7fbtf7gI/AAAAAAAAAmo/BLUVjdEOb9Y/coral+walls.jpg

Be sure to keep a lot of white in the room (floor, trim, fixtures) – otherwise you’ll feel like you’re in the flames of hell with a warm color like coral. (Been there.)

With all this tile and hard surface, you'll need a little softening. I’d skirt the sink with some fabric that pulls the colors together and introduces a touch of black (blue + coral + black). You can do a very tailored skirt if the gathered look is too girlie for you.

Trust me, this would look great!

I'm feeling a painted floor with a bold patterned stencil, much more interesting and forgiving to keep clean than solid or (eek) white. I would warm it up with dark walls (probably a grayed out navy) and some mustard (or deep) yellow. The white walls are too cold unless you are in a very hot climate and dark walls make a bathroom cozy and luxe.

I agree: White stick on tile floor (or real white tile floor), navy walls, keep the beautiful blue turquoise tile.

What you need is to get some turquoise grout. That thick line of white grout in the corners of the turquoise tile does not look right.

Maybe try white and blue or gray and white striped Hamam towels? Have fun!

Navy - crisp white towels - candles and chrome accents!

Just wanted to say the bathtub and the sink are amazing. Please never replace them!

I'd try silver or a very pale grey on the walls and a simple white floor, but maybe with a really bright red or orange bath mat as a contrast (like in this Miro paintings) http://static.guim.co.uk/sys-images/Arts/Arts_/Pictures/2011/8/11/1313070964365/Blue-1-and-Blue-2-by-Joan-007.jpg and I would replace the mirror with a nice antique one, maybe a deco one with a wood frame like this http://www.deco-dence.com/Mirrors/French_burlwalnut_framed_withbevel.jpg

Likewise, you have some room under the window to put maybe a small, low wooden credenza or table, or just a simple wooden shelf and a beautiful chair. Some really nice furniture would bring all the luxury you need in your bathroom.

If it were my bathroom, I'd check what is under the linoleum (?) tiles and either renovate what's there if it's interesting enough, or just re-tile it with real tiles, not stick-on. Grey if I kept the walls white, or white if I painted the walls grey.
I'm not sure what you can do with the window, but a nice patterned curtain could look really good. One that would match that bold-colored bath mat!

Navy walls and floors (farrow and ball has an amazing navy.) Pops of yellow or coral. Enjoy!

I love the coral / gray / tile turquoise / white combo. I would do the wall behind the sink & mirror in coral, the rest of the walls in a warm light grey, and sink skirt / curtains (I see natural light - there is a window, right?) in coral / turquoise / white fabric. White bath towels and coral or turquoise hand / accent towels. Those tilEs are seriously gorgeous, and so are the sink & tub. You are lucky to have such a lovely starting point! Please share your after pictures!

There are a lot of shower curtains out there right now featuring this color, so even if you don't need a shower curtain you might shop around and look at them for color combination inspiration (many of them feature this blue combined with browns or grays). I have this tile in a very tiny master bath and we've got white walls, dark gray towels and chrome fixtures.

I think I'd love the wall with the window to be painted or covered in a fabric with a large white and maize yellow brocade or floral design, then do a gray and white bold stripe flooring, leaving the walls white with some complimentary art or large framed fabric panels (maybe with hooks for hanging towels, clothes & robes) or mirrors on the wall to the right of the door. I like the idea of navy, but I personally would have a hard time with finding the right shade to not clash with the existing tile.

And FWIW, our room originally had white wallpaper with a natural green ivy pattern and IMHO the natural green shades of the ivy vines did not go well with this bright blue tile. Perhaps a bright key-lie-pie shade of green would be a nice highlight color, but the natural green shades just didn't work with this tile for us.

Lastly, I love all of that space! You could put in a little vanity and a bench or side chair and really make this spa-like with all that space. Please post "after" photos once you decide what to do!

That big open space would make a nice sauna. Then you'd only have a little patch of floor left so you might as well use white tile. :-)

Reading everyone's comments, it seems as though I am the only one not keen on that blue. A tad bright for me. I'd paint the tile for sure. But if you want to leave the tile blue, what about going with a deep chocolate brown for the walls? (See Benjamin Moore Brown Sugar 2112-20), For the floor, you could go white but you might find the white doesn't match the whites of your bath and sink - might make those look yellowish. So you could go with a muted yellow - Benjamin Moore Honeywheat 179.
(I am in Canada - these are Benjamin Moore Canadian Colours).
Post pictures when you are done!