Hi,
A long padded bench under the windows with pillows would be great. TV can't go over the fireplace it will be way to high. Maybe stay clear of sofa or love seat and do four big but low profile club chairs/recliner with round ottoman as coffee table. Where will you place the TV. I also think two small thin tables can go on each side of the fireplace. If TV has to go over fireplace I would remove the mantel and stone.

Thanks so much! A large screen TV has already been placed. I have attached a new photo. I like the thin table idea to each side of fireplace.

I love this small space that you have! And that view! Wood floors- it doesn't get much better! Place a grey sofa in the middle of the living area, facing the fireplace and a matching pair of casual chairs ( if space allows) either on opposite sides of the room or side by side. Add a few medium size plants.

. Oh that looks great, I couldn't see that side of the wall from the previous pictures. See attached pic, after seeing it maybe shelves would be nice in the nitches if the shelves line up with the lighting.

Also add a 5x7 carpet in front of the sofa!