A way to calm down the rug is to use a solid fabric window treatment. I think the color of the purple-ish pillow would look great! It will give the room some warmth and break up all the gray and neutrals you have.

Should I just hang two panels on the wall portion? Can someone make a little sketch,please?
Thank you very much guys.

I think creamy white sheers would soften the space. You already have light control with the blinds. I'd also paint the little wood table black because the wood tone doesn't relate to anything else in the room. I'd angle your armlesschair out and facing the sofa. I like the rug! Oh..since you have the "bulkhead" you can hide/tack rope lighting under the "valence" and have a nice evening glow there!

Hi sondramartina---I agree with Darzy, soft off-white sheers on the windows. I want to tell you there is something throwing your room off to me-and it is the wall color. The 2 different green hues are "off"-too bright for the muted color palette. Before you do anything else-I wish you would consider painting the walls a different color. I'm going to give you a few-please pick up the color charts from Sherwin Williams and see how they look with your items. I know painting is a pain in the butt, but trust me on this. Everything else is working here for you. Colors: SW 6277 Special Gray, SW 6004 Mink, SW 7081 Sensuous Gray, and SW 7018 Dovetail. Check the colors against the color of your sofa---make sure there is enough contrast in shade, not color-so that the sofa is a shade lighter or darker than the paint. Paint all the walls the same color. If this room opens on to another room, you can go a shade or two lighter on the same paint chip for other areas. I hope this is helpful to you. Really nice room. I love the colors-all but the bright walls. Good Luck! Pics are color inspiration.
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Wow, talented advice: Stanton, Darzy's white sheers, Natalie's paint colors! My little additions would be that I see you as a ”Global, Intellectual, Romantic, Modern Audrey Hepburn” so Sondra....donate that rug, find a white shag rug. Your feedback? :-) Diane

I like the idea of sheers all the way across the wall..and I would put black chair caddy corner of coffee table facing couch and chaise section..opposite where it is now..I think that would make a more cozy conversation area..then I would put little table to right of chair..you could paint it white or silver to match coffee table

Lovely-so glad to hear you're going to consider painting. I know you'll be happy. Like these 3 (off-white) for windows. Less than 30 and 40 for a pair-and they're long-hang 'em high---Yay!
http://www.overstock.com/Home-Garden/Off-White-Poly-Voile-96-inch-Sheer-Curtain-Panel-Pair/6220251/product.html
http://www.overstock.com/Home-Garden/Linen-Open-Weave-Cream-96-inch-Sheer-Curtain-Panel/6188037/product.html
http://www.overstock.com/Home-Garden/Off-White-Poly-Voile-96-inch-Sheer-Curtain-Panel-Pair/6220251/product.html

A picture taken during the daytime (with the blinds open) and forced flash would give us a better color rendition and increase the clarity. It almost looks like it is foggy in there!

http://www.wayfair.co.uk/Safavieh-Salma-Grey-Multi-Rug-SAFA1050.html
I am heading to SW to check swatches.I will do something about round end table later.

I have no idea where that yellow color in foyer coming from???!

Calm the rug by placing at an angle so all the squares are on the straight. Move the furniture away from the window a bit and use heavy fabric gray traverse drapes in a solid coor with no glass and a wee bit of texture. Match the walls approximately.

If I choose to paint the walls gray would it be too much gray,picture on the walll is black and white- gray?
@ Natalie. Should I find EXACT sofa colour and then go with shade lighter or darker?