Installing bathroom floor tile on plywood is possible, but there are considerations. Ensure the plywood is sturdy and well-secured to the subfloor. Use a cement backer board on top of the plywood to provide a stable surface for tiling. Apply thin-set mortar to the backer board and lay the tiles as usual. Plywood can flex, so it's crucial to prevent movement that could lead to cracked tiles. Follow proper installation guidelines to ensure a long-lasting result.