Yes, we need to see pictures of the whole room but right off the bat, I see a few things. Yes, and area rug would be a starting point. Please spend the extra money for a pad, if you want children to be able to play on the floor. Except for the couch, your seating is all hard. Would like too see more upholstered pieces and I would suggest something like the ottoman below. Adjustable height table with storage wedges. Kids could sit around table and color or play game or you could use wedge to prop up your feet. You have a case of what I call, "the Browns"! Consider painting the paneling to match your wall color and then a darker shade on the fireplace. It looks like you have a computer to right of fireplace, so maybe two parson chairs flanking fireplace-one of which would be used for the computer. Again, just need to see more pics.

thank you for your suggestions. Here are some additional photos. I do plan on purchasing a rug. Would this be a place to introduce color?

The wood chairs are just there temporarily. I am not happy with the loveseat and would like suggestions on alternate seating and where it should be positioned.

You could consider wall mounting the TV right over the FP. Then get a comfy sofa and face it toward the FP. Add an accent chair on the left under the front windows. If you have the room and want, you can put that console table against the back of the couch, still defining the entrance from the room. The dry sink may still work on that wall unless it is too tight. Yes, add color in the rug and in an accent chair. Find a couch that is grandchild proof but still elegant. Your lovely console and drysink are 'fighting' in styles however. So decide, do you want more rustic or more traditional.

The room is a little small and I would want a nice piece of art over the fireplace, not a sculpture, to draw the eye to the end of the room, which will make it seem larger. There is also too much wood in the room - wood wall, wood floor, all wood furniture. To break this up, you could try a metal and glass coffee table. Definitely declutter the hearth. As a final thought, if it were me, I would probably paint the entire wall over the fireplace white. It would broaden the feel of the room so much and brighten it. Dark rooms tend to be places we want to sleep. Check here for inspiration for some artwork: http://www.houzz.com/projects/1295077/art-original-abstract-paintings

Is that a tapestry or a quilt on the entry wall? It looks colorful, and perhaps a rug as suggested, using those colors, would enliven the room. Would the quilt fit over the mantle or is it too big?

need much more color,color (preferably off white,white,yellow,dark brown)could be added with rug,curtain,cushions etc.Brass show piece could stand out beautifully against wood.Fire place wall color could be changed to break the monotony.

Can you take a picture of the wall with the dry sink? And what is behind the door by fireplace?

I would move the long table under the tapestry and get an end table for beside sofa. Of course, a rug.

Paint the wood a soft green, accent with red.

Not so much on the wild side :>)

i really appreciate everyone's comments. I will send another picture. I have been toying with the idea of a small sectional to replace the loveseat. I would place it as you walk in where the table is. What do you think? I love your pics Susan. Can you give me info in the rugs, chairs and ottoman. Any color suggestion for the wood? There is a closet to the left of the fireplace.

i am kind of attached to that sculpture. It is from my childhood. Would it look better if the wood was painted?

https://www.pinterest.com/pin/520588038156225004/ i like this look

Here is a possible floor plan.
1. Paint the walls BM Revere Pewter.
2. Paint the fireplace wall sage green as suggested.
3. Move the console table so it is under tapestry as suggested.
4. Remove the cornice board and add drapery panels.
5. Add some black items to tie in tv and tapestry.
6. Add end tables, lamps, area rug and storage ottoman.
7. Add wing chair and floor lamp.
8. Add large clock over fireplace.