Is this your formal living room and formal dining area? Very warm and bright space. Love the rugs. Need to know function of this room before I can offer ideas.

Ok, saw your other posting, so now I get it. This room is challenging because it is right next to another sitting room and you aren't formal living room people. Honestly, nobody is anymore. But the good news, it's a beautiful space, it just has an identity problem.

So what else can you make it? An office, a library reading room, a music room, a game room with a pool table, a craft or art studio, a garden room, a place to display a collection?

Decide what you want it to be and how best it can serve you that suits your lifestyle. Are you able to buy new stuff or do you want to use what you have? These are the questions a professional designer would ask. What are your hobbies and preferred activities? What would you call your design style and what is your color palette? Do you have an inspiration piece, family heirloom that a design could be built around?

You need to encompass the entire room with one large area rug...and get more furniture if this is in fact your family room. I don't see a TV? so not sure if this is the formal area or not...but even so, one large are rug...will make the room feel great with more furniture like a sectional sofa and a couple of chairs in one grouping and then another area in front of the fireplace with two more chairs for a conversational area. If a TV is going to go into this room, I would put it over the fireplace to be sure to focus on one focal point....