I would also paint the wall white.

I just feel like filling in the wall and painting it white would make the room so boring ☹️

My television is up high. I don't like it, but am not a fan of T.V. I like Sina's idea. The space is small. I would leave the TV out altogether.

I'd fill the hole and remove the fireplace. It also depends what kind of furniture you have. Instead of shiplap, spend the money on nice window treatment.

Joni - you are concerned with the room being boring..............but that is secondary. First you need to resolve all the difficult design elements you are dealing with. Then you can make the room interesting with great design!

First; the FP being off center on the wall is disconcerting. Second, is the FP stationary/built in or can it be moved? Third, is that a large window on the right?

Regardless, Sina's advice is spot on. So is everyone else's actually,,Can you put the TV somewhere else?

Please send us pics of adjoining rooms and measurements if possible -