What do you want to use it for? Home theatre? Workout? Man cave? What's your budget?

Your pix aren't enlarging! Is there asbestos here? What kind of floor tiles are those?

lhutch13's questions are important. Honestly, I would get rid of everything. Replace the flooring and replace all veneers with drywall. I would also remove the built in bar. Please let us know what kind of budget you have.

You didn't say any structural change to staircase - but if stairs were re-done, you'd have an openness more so, near the fireplace... [I wonder if space below it has storage currently]

lhutch13. Let's say man cave or cigar lounge (except I don't smoke). I'll be going on the cheap. Really looking for color schemes; changes to carpet, wall, stone. Not looking to add stadium seating or a holodeck (Star Trek, anyone?).

deco, no asbestos, and that is carpet, not tile.

annied, I know what you mean. This room belongs in a museum. You should see the oven in the kitchen. But no, it needs to change. And your suggestions are what I'm looking for, but I want color ideas.

phun, although I say stone veneer and there is drywall behind, it is solid, like the rest of the solid brick house. I'd like to remove it, but in my budget. And that wet bar stays. Thanks for helping me bring out more details that you all need to assist.

Beverly, awesome, but not going to happen. The purchase price for the house was $113,000 (Midwest). The space in the first picture looks like it's going to cost the value of this home.

everdebz, not messing with the staircase, except to change out the vinyl. Here it is...

All of you, thanks for your help with this. You're all great.

Stone can be painted or whitewashed. http://erin-artandgardens.blogspot.ca/2013/02/painted-stone-fireplace-before-and-after.html

However, if there's drywall behind the stone then you might be surprised how easily it comes off.

Do you like the color/ look of cork?

Awesome space! What about something with this kind of a feeling/color scheme. The white helps lighten and the warm grays add depth and dont clash with the vinyl flooring.

If I was doing your basement on the cheap - I would paint everything white (trim, walls, bar, stair railing, fireplace; everything) and put in a luxury vinyl sheet flooring in a warm gray color. New brushed nickel ceiling lights.

Decide on how much you have available to $pend on the project. In my book, it would be worth it to have a crew come in and do all the removal work, followed by a big vacuum system to clean all the residual dust and crumbs.
Even if you believe there us no asbestos, wear a good mask and goggles when working down there. Close off the door from upstairs to contain dust in the basement.
Get rid of everything orange or yellow.
Replace the carpet with vinyl "wood plank" in a light to medium brown.
Keep colors light since there isn't much natural light.
Keep it simple to keep costs down.
Add storage with doors...every home needs more storage.
Add lighting and use bulbs which illuminate without glare.
Don't expect one light fixture to be enough for the space.

Following

Are you good at demo? Because if you plan to use the fireplace as a tv/seating area, you don't have enough space and the bar should go. If you plan on popping a poker table or such there, then the bar is fine. On a budget, your options are paint and flooring. I would do a luxury vinyl tile/plank on the floor. If you take that stone off the wall, you would have minor drywall repair, but that stone sucks all around the room. I would invest in an electrician to come in and wire some lighting in the ceiling. That will be invaluable.

I am planning a basement remodel after my teenage boys graduate. Mainly because when the previous owner finished the basement, they put things all in the wrong place, like the bar. I have tagged a lot of basement photos in my ideabook. Go check them out and see what strikes your fancy.

What is that on the wall behind the stairs? Is that a telephone??

If you don't want to spend much or do extensive labor yourself, I agree with Rawket Grl & partim. Either whitewash or paint all of the stone white. Walls and baseboards white or very similar. Spend most of your budget on the floors. Light wood or grey vinyl wood plank.

Agree with more pics please!

Break out the Jiffy Pop! I suggest going full-out Retro on this beauty, minus the mural and drapes. Bean-bags, a boomerang coffee table, Naugahyde sofa, lava lamps. Some "Pop Art" on the walls. Better lighting is a must. This space, done well, will put a smile on everyone's face.

I'm no designer, but I love the mural and vote you keep it! I would enjoy seeing a better picture of it. Yes to retro styling!

Thanks for the suggestions.

So after your input, serious consideration is being put into wood vinyl plank flooring, removing the stone and wood, painting walls white, and new lighting. Would you suggest anything with which to replace the stone around the fireplace?

It is a wet bar so getting rid of it would mean some plumbing work. The wood-like beam conceals the pipe.

What about keeping the accenting veneers: around bar, and around fireplace, which isn't much [?]. Then a warmish flooring with this type palette: natural, ivory, deep red, deep yellow:

[https://www.houzz.com/products/marseille-cotton-18-square-throw-pillow-natural-red-ivory-yellow-by-kosas-home-prvw-vr~107436354[(https://www.houzz.com/products/marseille-cotton-18-square-throw-pillow-natural-red-ivory-yellow-by-kosas-home-prvw-vr~107436354)

https://www.houzz.com/products/geometric-southwestern-20x20-throw-pillow-pillow-cover-only-prvw-vr~80031512

Or all veneer painted as said - all a light neutral. Then maybe fresh green, with or without navy:

[https://www.houzz.com/products/marseille-cotton-18-square-throw-pillow-indigo-green-by-kosas-home-prvw-vr~107436441[(https://www.houzz.com/products/marseille-cotton-18-square-throw-pillow-indigo-green-by-kosas-home-prvw-vr~107436441)

https://www.houzz.com/products/bicycle-with-shopping-bag-photo-metal-wall-art-3-panels-36x28-prvw-vr~74491779

Basements I think - are ok for engineered wood, and it looks nice.

[https://www.houzz.com/products/traditional-hardwood-flooring-prvw-vr~18097561[(https://www.houzz.com/products/traditional-hardwood-flooring-prvw-vr~18097561)

https://www.houzz.com/products/avion-brown-leather-club-chair-brown-with-aluminum-sheath-prvw-vr~12463725

Renovisions, inc.: This flooring is a high-end vinyl from Amtico called Worn Oak.

[https://www.houzz.com/photos/beautiful-beach-house-kitchen-remodel-by-renovisions-beach-style-kitchen-boston-phvw-vp~5681099[(https://www.houzz.com/photos/beautiful-beach-house-kitchen-remodel-by-renovisions-beach-style-kitchen-boston-phvw-vp~5681099)

https://www.houzz.com/products/retro-bicycle-against-stone-wall-landscape-photo-glossy-metal-wall-art-40x30-prvw-vr~71687465

Oh man! What a gem. Our basement looked a lot like this when we moved in. Except swap out the stone for wood paneling. We basically gutted the basement. Tried a couple colors but due to lack of natural light none of them looked good with the brick fireplace and stone. We ended up going "marshmallow white". Try embracing it and then if it doesn't work out make some other simple changes. Vinyl plank wood flooring since they make waterproof ones and it's a basement I think you could get away with taking down all stone except the fire place front and bar front. Going with a warm white for all the walls and brown trim (a warm brown to accentuate the stone)? Then bring back color pops in the artwork and accent chairs?

love the idea of a mural, but the window coverings are throwing me off. What's it look like with them?

Please show the mural better.