Omg, there is no question that that space needs a major update.

We're open to suggestions.

I think it's fine also. The world ( first world anyway) has gone "update" crazy. It's a basement rec room for gawds sake! Probably from watching too much HGTV :)

I would leave as is. Looks cozy and fun!!

If anything we were thinking of adding Alaskan White granite countertops, removing the wooden paneling on the back wall and adding drywall plus 2 wall cabinets and then adding a darker updated wood for the front of the bar. Thoughts? Is the floor an ok color or too dark? Should we go lighter?

That would be fine but I think a basement rec room bar can be a spot where you can go a little crazy & fun with the decor. Maybe something unexpected. I like the paneling, gives it some character & warmth.

First of all I love the potential in this space! I would update the decor on the countertops and on the wall (maybe add a little color). A rug in the kitchen wouldn't hurt! These changes would definitely make your space more welcoming.

Is our granite countertop idea a good one?

You could paint any or all of the wood the chocolaty/charcoal color of your new barstools. If you do so, prep is key. Clean with TSP (tri-sodium phosphate,) rinse, let dry, lightly sand, tack off sanding dust, prime with 2 coats KILZ or Zinzer, paint with 2 coats of color. Your better local paint store can match the color of the stools.Get their advice on the type of finish to hold up better in a rec room. Before you paint the wall behind the bar replace the two short skinny shelves with some thick ones that extend from wall to wall to hold all the liquor and your glassware. Try under mounted glass holders for any stemware.and add some LED lights too. I would eliminate that boxy piece on the right by the bi-fold doors with a microwave cart for hot snacks, popcorn, etc. Keep the profile low so the shelves and glasses are the stars of the bar.

Thick, substantial shelves (you could add some LED strip lights under them too. For ease of reach, add hanging bar ware only under the bottom shelf.

It's a real treasure from the '50s and '60s when basements were made into "rec rooms" and covered in knotty pine panelling. I personally think this room has a lot of character and appeal. I'd get some Miller dancing lights beer signs and vintage Hamms Beer signs and go with it. Check out this popular bar's decor http://thehighlifelounge.com/gallery/

I think it looks fine! Nice bar. I would leave the countertop. The only thing I might do is organize all the bottles better (so it doesn't look so cluttered), and get that GB Packer helmet out of there. ;-)

Love the cabinets. If anything I would change the countertop to a darker color. Even a dark granite or slate look laminate which would tie into the new bar stools better. I don't think a white granite would look good with all the wood cabinets. Maybe clean up the shelves and put a tv on the back wall. Agree that the bottles would be better hidden...can't they go under the counter?

I would definitely change the courtertop. There is no contrast in this room.

The knotty pine paneling is outdated - shiplap might be an updated option.

A graphic area rug would expand the space. Have fun and make it your own.

A update would be amazing. Here are some suggestions to get you going:

Would a slate granite countertop better match up with my overall area vs a cream granite countertop? At first I thought this type of granite would match up well.

If we go with a slate colored granite countertop what should we do with our existing paneling on the back wall and the front of the bar?

If we went with an Alaskan White type granite countertop we could stain the paneling a slate color. Thoughts?

That may not be real stainable wood. May be best to paint it.

We're still torn on what color granite countertops to get if we go that route. White or Gray? And what color to stain our paneling afterwards??

Paint is usually the last item chosen in a decorating makeover project. You want it to work with your fabrics and textiles, as well as with the granite.

Redo the stool seats or add cushions for greater comfort.