Sadly, the shape of the room isn't conducive to a double chaise sectional. Do you feel like you need more seating? Having the two chairs out in the wings doesn't help the layout. Might as well find a suitable area like perhaps by the window and door in the last photo? Also is this a combination living room/media room?

I agree with Paul. Your furniture is wrong on a couple of levels. First, it doesn't fit in the room. Second, you've got a modern sofa, traditional chairs (which look more like dining than living room chairs), and an industrial media console which totally doesn't fit with the style of the home.

Are you willing to replace the furniture?

Or will the sofa fit and leave enough walk space if you turn it 90°?

Here is a more appropriate media console and chair. I would try turning the sofa with its back to the stairs, then placing two swivel chairs like this one across from it. You could put the TV on an articulating arm so when watching from the sofa only, it could be turned into a better position.

Yes, I'm willing to replace furniture and move things completely around. The room with the windows currently acts as a kids playroom but could be used as a media room if there was a good furniture layout we could create with the limited useful wall space

I feel your pain. I too live in a space with s long narrow room and kitchen with an island. My first suggestion is not build your sitting around a TV. With today's TV wall hanging attachments that should be hung to suit the sitting area. I am confused what the room with windows purpose? It has a small table with two chairs and a book rack with children's books. I would move the couch in front of the arch that divides the two areas leaving enough space to put a thin couch table behind couch and walking space on both sides for walking space. Place the two chairs at the other end of the room with consideration to the steps down down to living area. Small cocktail table on outer side of each chair. Ditch the table under the TV. A large area rug and a coffee table in front of couch. Then play with the placement of TV that swings and add large paintings. The space behind couch needs a purpose...breakfast room or dining room. Ceiling to floor drapes will soften the room.

I know...there is a lot of randomness to this space. It was a rental that we ended up purchasing and we are trying to make sense of the random spaces.

Try turning the sofa 90° and placing the two chairs opposite, then giving us a photo so we can see how that works.

If you think the far room with the windows might be a better media room, give us shots of all four walls there, too.

Can you use the room with the tv for a dining area and use the dining area for living space (switch the two?)

I know this is totally off topic, but how come there is no railing on those steep steps?

Good question, Margo.

Thank you groveraxle! I appreciate your suggestions.
There is no railing yet. It is ordered and shipped just haven't received it yet.
The couch we currently have is too wide at 12 ft to place 90 degrees so it would need to be replaced first.
Here is the dining space. We are open to adding or removing a wall. Just trying to make what we have work.

i think switching rooms might be best too.

Switching which rooms??? I've had several suggestions. I need a playroom for my kiddos, the tv/family room and the dining area. How would you all switch them around?

Kiddos where the sofa and tv are now. Right across from the kitchen, easy to supervise while cooking etc.

Family/media room in the room with windows. It seems more "prime real estate". But pics of that area would be very useful!!