You could also wallpaper the space (ceiling, too) in a small print, and then add the new counter and shelving.

Thanks. I love these ideas. Really struggling with the light fixture

Just a can light would be fine. You don't really need anything in the ceiling that protrudes into the little space. Keep it simple!

Take a look at 'Branch Birds' wallpaper in the Houzz products section. I wish I knew how to add it here as a photo! It would add a little whimsey, though it's not really suitable for the ceiling... It's the easy, do-it-yourself kind of paper, too. Comes in 2 colors.

IMHO, "decorating" a closet space like that is a complete waste of time and effort.

Make it as useful as possible, with minimal visual clutter. This is a work space and function is foremost.

The biggest improvement I would suggest is moving the light to where it isn't glaring directly into your eyes. You need widely dispersed, even lighting. I'd move the light to the wall on the left side of the door. Make it simple, like a bulkhead light, with a frosted cover to diffuse the light. Paint the space with a light color to help diffuse the light better.

Is this the paper you were referring to maggierateye?

Yes. I don't know what your living room decor is like, or if this would work together, but this also comes with a sage green instead of blue for a touch of color.

Tatts, normally I would agree with you about decorating a closet, but this isn't just a closet, it's a work space where time will be spent. And since it opens into the living room, why not make it more attractive? The cost would be minimal for such a small space. Why not make laundry chores more pleasant?

Thanks Katinparadise! I love the wallpaper Maggie! I had kicked around the idea to same brand of paper but I think it is too dark

I would nix wallpaper in a potentially humid space...but some colorful paint would make the space more cheerful maybe different pastels on each wall and ceiling or variations of one color... since you seem to be using the angled wall for notes perhaps a cork board or even chalk board paint to use like a blackboard... most of all to improve on the shelving.., some wider shelves that are at an accessible height... intersperse a few decor items among the more functional needs... I keep my laundry soap in one of those fancy little tin waste baskets with legs ...and use pretty little flat baskets to store things like rubber gloves ... I also use cool old heavy ceramic vases to store scrub brushes upright for easy access

With the thought of making this a fun bright space...perhaps explore the lighting in a tube... some of them offer quite a bit of light and can be installed all around where the ceiling meets the walls and even along the angled wall in front and/or back as well... sort of all over indirect light...

Tho’ er
We are away for the winter I realized I had a tiny waste basket like I use at home for the laundry soap... with a scoop in it ....so easy ...no heavy soap containers or boxes to deal with....the tall basket work great for cleaning brushes

Paint the walls the same as the living room walls. Why draw extra attention to it by using wallpaper or a contrasting color? You don't want the laundry area to be the focal point of your living room.

Don't need to decorate it. It's literally a closet.

Personally I like little unexpected surprises ....kind of like a beautiful silk print lining inside a tailored jacket ...

Really successful interiors are all about the details

I agree ritasj. Just because it's a utilitarian space doesn't mean it can't be fun. It's not like the doors are open all the time so there's no reason not to have a little surprise when the area is in use.