There is an issue with the placement of these furnishings. They don't relate to one another. Can't really tell from your photos the size of these items or how they can be reconfigured.

Thanks Beverly! Living room is small plus I have large kitchen opening and hall opening very awkward Space. What you see is about all I can do with this furniture. however I can move that chair to join couch. With out blocking. It's so gray in here I need some color...one thing I know I can do is change the throw pillow covers to colorful designs...

More photos..

I think that furniture is too large for this room but it is what I am stuck with. For at least 4 more years! I'm just trying to make it pretty..

The floors are super busy so calm them down with a solid rug. Use a color, anything but brown.

Make your seating area closer to the fireplace.

Pull the sofa forward.

Lower the TV over the FP.

Put the chair on the opposite side of the FP--looks like there is more space for it there.

Is the piece on the side wall a chair, a love seat or another sofa?

I do not see any lamps. I would turn off that glaring overhead light and use lamps only. The large TV overpowers the fireplace. Can you swap the fireplace with something larger?

I would try a lighter rug as suggested. I think that any pattern is going to clash with that busy floor. Your home looks very nice....just too gray as you said.

I think the couch feels too far from the tv/fireplace. Can you put a console table behind it, to push it forward about a foot or so? As for the rug, is this too light for you? http://www.westelm.com/m/products/watercolor-trellis-wool-shag-rug-ivory-t2570/?pkey=crugs-flooring&isx=0.1.5952

Can you take a picture from the fireplace towards the kitchen and from the entrance towards the wall with the window?

Cause I liked leelee's teal rug, blue-green whatever color exactly -- I'll post photo I passed by just now -- seems it could go well with cream and grey, etc....

The other chair is an oversized chair lounger

Photo from fireplace I've posted several more photos prior this

I think the sofa is too long for that wall. Will you swap the sofa with the loveseat? You may even be able to corner the loveseat and watch tv better. ;) I know it will waste a little space, but it may work. Then, I'd put a floor can up-light in the corner. In your case with the children and pets, if this new arrangement works, I would suggest getting a couple of rugs to put together that is machine washable for under the coffee table.

I like this rug for you very much. Under $100. I usually like the rug large, but I think a small rug, under the coffee table will look nice and keep your pretty floor visible.

I will measure and see if it will fit without covering Windows. That's a thought and I don't remember if I tried that. I can move table and lamp over and move coffee table with couch! Hmmm thank you!

Hey...this could be stylish and fun...AND machine washable! How about a faux fur under the coffee table? You don't always have to have a large rug and all furniture legs on the rug. Here is a photo of a "too small" area rug. Looks fine here!

I wanted a faux fur in front of fire place

Here is a quick ideaboard...

Put ONE generously sized piece of art above the mantel. REMOVE EVERYTHING ELSE!!!!!

Put in a door with a side light. Widen the gable and beef up the columns.

Definitely move the couch away from the wall with the kitchen opening. I would use natural fibers rug like sea grass in lighter color, like wheat.

I agree - use your fireplace as a focal point. If possible, move your tv - it is too high, plus the warranty could be voided if it gets damaged from the heat of the fireplace. Perhaps put the tv next to the fireplace? Don't be afraid to pull your furniture away from the wall to make a cozier arrangement that is conducive to conversation. Also, put some lamps around the room to give it more ambient light

Oh yes... I couldn't see any of the yellow and gray. Perhaps consider a pop of color, such as a red or wine color?

Finally, make sure rug is big enough so the furniture sits on it a bit. If there is space between the furniture and rug, it will make the room look off and disjointed.

Can you get rid of the large piece of furniture with the enormous ottoman..pretty please...I would move your sofa onto the half wall...add coffe table in front of it...bring your beautiful chair over with its matching ottoman angeled into the room towards TV...lower TV....add a small end table with lamp and add a floor lamp next to chair....add soft easy care rug...add some large floor pillows for lounging and watching TV for the kiddos...Have fun!

The fireplace is just a console with an electric fireplace, right? So it can be moved?

I would suggest moving the console and the TV between the windows and putting the sofa on the half wall but you could probably keep the console where it is and still make it work. Get rid of the big ottoman and use the chair/loveseat in an L configuration with the sofa. The smaller chair with its ottoman angled on the other side.

Here are two options for you:

Great job..izeve....

I'm looking for a softer, in-between of all your things [though can't see the gold chair]... this has an transitional look? not too busy with your floor?

If you find a rug with bits of black and your accent color - idea for red.

If you cover a chair or ottoman with red fabric, and have red art, this rug? Seems to repeat same neutrals there... ? Casual look.

Another direction to play up gold and charcoal, and textures too.

Too brown-ish? - but idea - if seagrass is same color as in tile.

You might like some aged / handmade vases, etc...with this type.

Called 'natural' color [and probably not yellow] and could tie in fp with texture.