Have you tried any other arrangements in this room? You may find that the rug isn't so troublesome once you get a more balanced arrangement in there. One idea I can see to try is to put the drop-leaf table on the wall where the staircase is, and float the sofa so that it faces the FP. There should be some walking space behind the sofa. Place the rug you have parallel to the sofa, just snugged up to the legs and all centered on the FP. Then, I'd try angling each chair on either side of the FP; also snugged up but not on that rug. Personally, I'd keep the rug for now and spend my $ on a lamp to place on the right end of the drop-leaf table, artwork to place on that wall, and perhaps a floor lamp/table combo to place next to the chair that's on the right of the FP. Good luck!

We've tried a couple but the room is awkward since there are a couple of walking paths along with the fireplace. Something similar to what you mentioned would be like this.

That only leaves 28" behind the couch for a walkway. The whole distance from the wall on the stairs to the hearth is 117".

Yes, I see! What happens if you place the sofa against the drop-leaf table (so that it becomes a sofa table) and the walkway to the stairs is through that space in front of the sofa? Since the space is small and awkward, I'd give it a try! Then, I'd snug the chairs in more.

Take the rug out and get your ideal furniture placement. I would move the sofa closer to the wall, traffic would go through in front of the sofa. (I love your furniture, by the way.)

Thanks for all the ideas! It's helpful to try to move it around. I took out the rug and shifted the sofa back a bit so the walkway would be through the middle. With this arrangement, I would add a narrower table behind the sofa and then some artwork above it. Maybe a plant in the gap that happens between the sofa and banister? I wouldn't want to center the sofa on the wall because that would make it really uncentered on the fireplace.

That looks pretty good! I'd say get the sofa table and add a lamp (maybe on the stairway side) along with a picture, and that gap will "disappear". I'd still try the rug you have, centered on the sofa to see how that looks. I'm a big believer in using what you have and buying what you don't! Maybe a floor plant in a beautiful pot in the window corner nearest the stairs would add a green pop, which will further take your eye off the rug. Placing something on it-small cocktail table, ottoman, etc., would also help.