Can you post a floor plan so that we can get a better idea of the rest of the space?

My first thought when I saw that first photo - before even reading your post - was: that space could use a nice (oval?) rug.

Does the fireplace actually get used, or is it exclusively a decorative piece? A fireplace without seating around it seem a bit lost to me - like fireplaces are meant to be sat next to.... even a dog bed nearby would make it feel more grounded - like a real place.

We use the fireplace often. It is all open to the living room so we enjoy the fire from our perches on the couch and now while we're having dinner at the island. I'll post a pic, (albeit somewhat dated) of the living room and hopefully that'll share some perspective as to the openness and space. The fireplace is directly behind me in this photo. It's really not wasted space needing a purpose I don't think as much as some decorative ideas to make the space more cohesive... I'm even floundering in my explanations! {{gwi:2137293}}From current and future ideas

I think a loveseat or small sofa on the wall opposite the island would be so cozy. Maybe a low coffee table in front? I would definitely sit there with coffee or cocktails, and a low coffee table would not block the view of the fireplace. There are lots of smaller scale options for furniture out there these days.

Love your kitchen.

I have a different floor plan with some similarities. Our island was extended during the remodel so that we can now enjoy the fireplace while seated there. It's so nice at breakfast on these cold mornings!

But we didn't know how well the sofa and coffee table that were in the in-between space before would work in that area between the kitchen & LR once the new counter stools, etc. were in place. It actually does work out. But thinking it might not, I searched out some upholstered swivel tub-style chairs. I found some really comfortable styles that fit the transitional/traditional style that would coordinate with our LR furniture. Some companies also offered them in leather.

I'd asked for ideas and that was suggested on the GW Decorating forum. I liked the idea that when we had company during the holidays it would allow people to chat with folks seated at the island, or turn the seats toward the LR to chat with people there. I was going to put a small table between the chairs. I could see something like that being a nice arrangement to enjoy your fireplace.

I would add a couple of smaller chairs, a smaller area rug and table in the middle with a lamp on it. I bet on cold days or nights you'd find yourself sitting there more often than you think.

You could also use a chaise or small chair and ottoman. I'd still add a small table with a lamp.

Another idea is a bench, long ottoman and some art on the walls.

I think some sort of seating is a must given the fireplace. If it were my kitchen, I'd probably have a bookcase on the wall filled with cookbooks and look at my cookbooks in front of the fire....but it's not my kitchen! Lovely kitchen by the way.

Well, the style doesn't match your space, but the seating and books might be a jumping off point:

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[Traditional Family Room[(https://www.houzz.com/photos/traditional-family-room-ideas-phbr1-bp~t_720~s_2107) by West Chester Architects & Building Designers Archer & Buchanan Architecture, Ltd.
If you stick with petite chairs, they shouldn't block the fire too much.

Here's one more that looks similar in scale to your space:

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[Transitional Family Room[(https://www.houzz.com/photos/transitional-family-room-ideas-phbr1-bp~t_720~s_2112) by Mill Valley Interior Designers & Decorators Jute Interior Design

You can try looking up "keeping room" for more ideas. That's how I found the two above on Houzz.

Thanks for all the responses! I measured the area and there is only about 7 ft. between the end of the island (slightly less when the stool is there) and the wall. Unfortunately I think the cozy seating area may be too tight of a squeeze for that area as it is also the walkway to the working side of the kitchen. I'm attaching photos from the living room side for a better perspective as well. I saw some really cool "pillow chairs" for lack of a better description in a hotel lobby in Portland that I thought were really fun- I'm wondering if a couple of these and a throw rug would be a little too funky. (The living room rug is out for cleaning so it's not pictured here but it's rather plain and wouldn't complete with anything else I don't think....) Thoughts?{{gwi:2137296}}From From

{{gwi:2137298}}From empty wall

You know, I thought a furry rug and some floor poufs could be fun, but wasn't sure if it was too "out there" either, LOL.

Or, how about an upholstered bench perpendicular to the fireplace?

I like the little seating vignettes for that space. I'd go for something with as little visual clutter as possible. You said you're a bit of a minimalist. If you're also a modernist, something like IKEA's Poang chair would be great there. Minimal visual clutter, and super comfortable.

We use something like this in a spare room with a low coffee table, it's great for a snack, computer, homework, chatting (ours has wheels which we like). It would work in front of your fireplace! There are lots of different kinds of floor chairs, including some Asian-style ones.

But your house could probably use something more transitional, like this, with a low coffee table:

Or inbetween:

What about a long narrow counter-height table that could double as a bar or as a buffet for serving meals or appetizers when entertaining with some open shelving above it. I'm thinking a wood top table with metal legs to tie in with your stools and to keep the area open so as to not infringe on the view from the living room.

If the table had a lower metal shelf it could even be used to display some of your entertaining serving pieces - platters, serving bowls.

Or it could have stools/ottomans under it, what a nice spot to perch while chatting on the phone or flipping through a magazine waiting for the trumpet teacher to leave lol! No, really, I like this idea.

Probably not your style, but the wall would be a great spot for a long church pew, maybe painted, with some nice pillows.

Large painting & upholstered bench (Barcelona bed style)? It won't obstruct FP & it could be pull in front of it to read-relax.

How about tea/serving cart?

carts

Sorry, but the link above is showing IKEA chairs instead...& it won't let me edit.
Here is correct link:

serving carts

I took my dining room table to the basement because it was never used. I had a blank wall so I bought a small buffet and it worked out well. It was not deep and it gave me more storage room.