You can still do floor to ceiling treatments with the window unit. Just don't stick with the footprint of the window. Use the entire wall to hang your curtains. Basically go outside the window frame and hang the rod all the way to where that bulkhead pops out. It will make your window look larger and distract from the window unit.

You can also do this with smaller windows. I made a tiny window in a rental home look huge with two pairs of curtains on each side hung floor to ceiling. You would never have guessed it was a small window.

Hi Mandy,

Thank you so much for the suggestion. I like the idea but how do you think it would work with the HVAC unit in the window? The unit protrudes out from the window by about 8 inches. How can I do floor-to-ceiling curtains while tastefully covering the HVAC unit? Would I have to mount the support rod 10 inches from the wall?

I think you cannot hide the hvac so I would do roman shades and be done with it. Get a nice fabric for the shades . I think mounting the rod that far from the wall will just look odd and make your space feel that much smaller.

use the rod that goes beyond the windows, so that curtains will be covering the walls on both sides. and make sure to use brighter curtains to add colour similar to http://sainteriordesignstoronto.com/arcadia-house.html

Exactly what S&A Decor was saying. Use the entire wall. Don't worry about trying to conceal the unit. There's no way it would be possible. If you do bright colored treatments with some pattern, it will distract your eye.