You are to vaque in your question. Modern as in style or modern as bringing it up to date?

Bringing it up to date. I like grey but my kitchen and living area are all one, so I'm not quite sure what to do. I want it to feel like two separate rooms.

Add bookshelves on either side of the fireplace, for sure, and paint all the trim and mantel white to update it. If you don't like the white look, go much darker - that medium honey color always looks outdated. If you have the budget/time, refacing the fireplace surround will go a long way to modernize the space. You can paint the living/dining space grey and then use artwork and furniture and rugs to delineate the spaces. Get rid of the tiny valances and blinds in the window, and add floor-length panels in a fun but subtle print, hung higher than the window. If you need privacy, adding bamboo blinds looks contemporary and clean. Can we see the reverse angle of the room, looking away from the fireplace?

I agree with teh white on the fireplace and think it would really helpl. As for the wall pick out a main colour you use in your furniture and paint away. Or even maybe a nice wall paper. There are some goregouse moderen designs that can make the room. Maybe in monochromatic or even something more dramatic depending on your style of course. While doing this I would also make sure to hit the window sills and the trim on the ceiling and the floor. Prehapes instead of painting the wall that is being used as the focal paint the ceiling? You could even wallpaper the cieling and depending on the paper paint it to accomadate and to give an updated look? There are also products that you can buy now a day to paint the porcelain. That would have to be done first being the chemcials are strong and can be a bit nasty. Not sure how effective it is but it may be an option. To paint in a faded manner from outer to inner giving the fireplace a unique and glowing view.

Here is a few of what I have. We haven't moved in yet and this is NOT our furniture! Lol :)

If you do not want to use white have fun with some colour!

http://www.google.com/imgres?q=images+of+painted+fireplaces&sa=X&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7ADFA_en&biw=1366&bih=520&tbm=isch&tbnid=aZ_Ron0vn6NbsM:&imgrefurl=http://tiffanyleighinteriordesign.blogspot.com/2013/03/brightly-painted-fireplaces.html&docid=ZNQLGWAEf3hxsM&imgurl=http://1.bp.blogspot.com/-yJXo7pQUZc4/UTJse8a1DhI/AAAAAAAAFnc/C0uOIjE6qb4/s1600/coral%252Bfireplace.jpg&w=479&h=551&ei=4s-9Uf-EAYTk9gSV64HQDg&zoom=1&iact=rc&dur=350&page=3&tbnh=137&tbnw=125&start=52&ndsp=29&ved=1t:429,r:68,s:0,i:292&tx=55&ty=80

That red is awesome! I'm not sure how I would make something like that work bc of the kitchen/dining being in the same room. But love the idea

or you can paint the fireplace grey and white and use colour on the wall ....

I love all the ideas! We have a newer house right now, so we aren't used to updating and changing stuff. I hope it's a fun adventure!

If you like gray, use two compatible grays…for instance BM Valley forger tan with BM gray mist.

I would bring in a new tile for the fireplace. And agree with above, paint it white. I know this pic is a repeat, but the tile is just so much more attractive than what is there now.

Your furniture has a more casual look, so you might consider painting the fireplace mantel even a darker color in earth tones to match your furniture or artwork . Then think about re-tiling the face and the hearth with slate tiles and then select a wall color that is lighter shade, similar to the photos posted. Notice the fireplace has a casual elegance feel and the furniture in the photo has more of a transitional style. This style of fireplace can fit into many decor styles.

The columns/ pilasters seem too small in scale and not into proportion to the mantle size. You may want to consider making the columns on each side a little wider, as well take into account the heart would then need to be made wider to accommodate the wider columns. It would be easy to build new boxes to go over top of the old ones. This would give you the opportunity to change the style of them, by adding molding or wood on-lays, etc.

The furniture isn't ours, we haven't moved in yet and are going to update it before we do. Thanks for the ideas!!

Paint the trim white; the wood grain is tough to pull off with a modern look. I'd retile the surround too... White 2-inch tile looks very dated; get a mosaic with glass, stone, and steel - it'll look a lot better.

Oops! I missed that. So do you have any photos of your furniture or what style do you have?

I don't have any pics of the furniture we are going to be putting in there. We are going to be getting new, but right now I have a black leather sectional and a printed chair.

Is it hard to retile the surrounding?

It isn't really that hard of a job to re-tile. Simple job that any tile installer would know how to do. Easiest way would be to take off old tile and install new. I have seen some installers even go over the top of the old with 1/4" wonderboard/ cement board and then tile over that without taking the tile off. You would have the thickness to deal with around the fireplace opening but that can be easily solved with a matching tile chair rail or pencil.

Typically most fireplace fronts can come off the wall and replace back on pretty easy too.

Paint all walls the same soft gray would work. Add wall units to each side of fireplace. To ceiling replace mounding and base to 6" ceiling and 4 " base paint all white incl firepl. Where tile is now, on FP add pearl black, gray silver. Tile squares. Roman shades in black on windows. Are rug 8 x10 shag silver gray. It will give rm a contemporary look. Float furn in rm. is there a TV?

I am thinking about wall mounting the tv. We have another "sitting/living room" to the left of this room that we aren't sure what to do with either. :)