Maybe use 3M Command hanger to hang a vertical tapestry on the living room side.

Know Original By Amy Tuso · More Info

Circe Invidiosa · More Info

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Yes to hanging artwork on it (no nails, use rail hooks at the top of the unit). Check that anything you stick on it will not leave a sticky residue in time. I hesitate to suggest the ubiquitous mirror but they can sometimes work wonders.

some sort of textile.... either a ready made wall hanging, or go to a fabric store so you can get the exact right length.

I vote for stick em mirror tiles.....interest,easy to do, come off, add lights, cheap. This below is a nice easy application for your space as you alread have the smooth wood. Vertical or horizontal.

Multi-Purpose Room · More Info

these are bevelled but you get the idea; do not use the smoked or antique ones; too dated. You could even to the side into the other room.

Cavitt Ranch · More Info