I think you need to sell your furniture on Craigslist. Use whatever money you can get to put towards new furniture that'll help the room flow.

May I suggest the Keegan sectional sofa from Macy's? It is big enough for one adult to sit with legs stretched out on the chaise and another adult to stretch their legs out on the main sofa part. It has a low profile and high end looking. Chaise is reversible so if you ever move and need the chaise to go on the other side you aren't stuck with one direction. also is it possible to mount the TV above the fireplace?? It really isn't working being stuck in the kiddie corner. The coffee table seems too large for the space as well IMO.

This is the sofa. In Charcoal it'd look nice. If you keep TV where it is, Put it in front of the window. It's low profile so won't be blocking light or window access.

If you put TV above the fireplace mantle you can put the sofa across from it. Put it flush against the wall with the window and have the chaise on that side. When people come into the room there will be a walkway behind the couch and running the chaise along the window allows for more open space in front of the fireplace

http://m.macys.com/shop/product/keegan-fabric-2-piece-sectional-sofa?ID=1878856&CategoryID=29391

A rough layout and dimensions would really allow houzzers to give you even better advice. Military housing is always "fun" to try to make homey. The coffee table will definitely not work with in the space. Two options to try to use your exists ting sofas. 1. Mount tv above fireplace. Place sofas facing each other, floating a bit if possible. This will allow conversation for a small group. Or tv watching for two while lounging on sofas. 2. Mount tv on wall opposite window. Set one sofa in front of window, the other at a right angle facing fireplace. Hopefully there is enough space to allow entry from front door. Try these, if you haven't already to at least get you in a more comfortable room. Then you can at least think more of what you want. A small sectional would be ideal.

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Wow I was expecting a shambles, that house is darling! Yes too small for your current furniture but It could work if you do not have the budget. What is your budget for this project?

I did not cover the door. I know you do not use it but if there was an emergency it is always nice to have more exits rather than less.

Here is a mock up floor plan with some of your current furniture. I added a small bench as a side table, it can double as seating for guests, I also added a set of 3 nesting tables you can use as a side table with them all stacked or pull out 2 smaller tables to use as needed. TV had to move over the fireplace, which I usually try to avoid but in this case it just has to be to give you some living area.

I purposely made the room pretty small but not knowing the dimensions I just guessed. If you could measure the walls and give room dimensions I could redo the plan for you then we can play with other furniture if you would like.

I forgot to add the 3D view...

I also say 'Because of the Brave(you and hubby), I am Free'!!! Thank you. He is wearing WWP - Wounded Warrior Project - my favorite charity to give to...Good Luck!

You are welcome Sara, Which walls are the 15'6"ones? The front door wall or the fireplace wall? I will correct the floor plans and re post for you.