What is that ledge going around the walls?

This is the couch faced towards the Tv.

Hi Kim! It’s the foundation - so kinda have to work with it. The living room is in the basement.

Another angle (older photo)

You have your living room furniture stuffed into a small box. Your rug is way too small. Use that rug by the entry or somewhere else. Get a large rug and expand the furniture arrangement. You need to do something with the long ledge...maybe a few family photos in one or two areas, but not along the whole ledge. Once you have your furniture arranged on a large rug, you can add art on the walls.

I would get rid of the flimsy bar thing in the corner. Buy a cabinet with doors to hold your bar things and put it where the box is in photo #1. Once you arrange the furniture with a larger rug, the bar cabinet in that position will be part of the room. There is an outlet there, so you can have a lamp on top of the bar...how about a lamp made from a wine or liquor bottle?
You need some kind of treatments for the windows, but I don't know what to suggest since they are so short and the ceiling is low. Suggestions, Houzzers?

I’m not pushing everything into one area... I was trying to kind of section off the TV space with the couch in one area and then create a more “lounge” space on the other side where the box is. But maybe that’s not the best use of the space?!

So 2 zones, good idea. Sofa facing TV as it is now. Pull it off the wall so the front legs are on the rug. A complimentary rug going the other way where the chair, box & bar are now. I think that chair is too large. Bar centered where box is now, from end of wall to baseboard heat. 2 smaller chairs and table between for conversation area. In the future sofa could be switched out to one with a chaise on the wall end (right when facing sofa) and TV on an articulating arm so both areas could view it. Inset roman shades on the windows

Awesome ideas!! That’s def what I’m going for with the conversation area - was thinking two fun accent chairs and a small coffee table - kind of like a bar or restaurant lounge - were very into entertaining!!