http://www.houzz.com/photos/products/outdoor-pool-decks

The retaining wall was fixed by the deck was repaired . The wall by the poolside just started to weaken that will be fixed ASAP prior to any renovations. Thank you

Thank you Elise!!!!

it does look quite unstable around the pool. I would want to be 150% certain that everything was solid, before starting to do anything landscape wise. Having said that, I don't think you are going to have a lot of choice in landscaping that hill. I am imagining a Mediterranean look- rockface edging/sandstone like Elise photos, large urns with potted geraniums, a sail over part of the pool for some shade. As far as plantings go on that hill-groundcovers and succulents' - check out www.BHG.com for great gardening/planting plans

Thank you I imagining the same look too... Thank you for the information..

I just wish to see a proper "hang-out" area around the pool. With sun lounges/seating. I would add a lot of plants, and colourful fabric to give the space life. Once the seating is configured, some outdoor accents will help to set the mood.

below outdoor cushions are from www.zahaarasanctuary.com

I'd get an effective safety fence first thing.

So much potential here.. this is going to be QUITE the project. As commented above, get a profesional out there to address structural/safety concerns. Retaining walls can be incorporated into planter boxes offering structural support and becoming a beautiful landscape feature. Once that's accomplished then you can work on redesigning "hangout" areas. Perhaps a new deck/patio (maybe even a covered patio), maybe an outdoor living area with a bbq grill, firepit....always fun entertaining poolside.