Does it get decent sun? If so, you could do raised garden beds with low growing ground cover between on the terrace side and sod on the other.

If your kids are anything like mine, watering will be no chore :)

It does get decent sun, but above and below this flat area are hillside terraces which I plan to plant heavily, so my plan was to make this area flat "hang out" space where I could put a patio table and chairs, umbrella, etc. on the part on the right in the top photo (up against the old stone walls which hold up the terraces which you can see in the second photo). This is the only really level part of the yard so I want it to be a place the kids can set up the soccer goals and run around a little - I have TONS of space for plants, very little level hang out space.

“Play on” doing what? That would dictate the surface. Grass is very kid friendly, I’m not crazy about decomposed granite as a play surface. I’d just fill it in with some nice sod.

Thanks all! Yes, I think too much DG gets weird. I like the idea of large stone pavers or nice concrete pavers with creeping thyme in-between on the "nook" side, and then I could do a no-mow grass on the other side, that was kind of my original plan. Could I do the pavers and thyme myself? I think so - I might just need some muscle to get the pavers up to the location from the road below.

Since this space is to be a "hang out" space, perhaps thinking of it as a greenspace patio might yield ideas -- maybe stone or brick or pavers with grass or ground cover in between.

https://photos.hgtv.com/photo/stone-paver-walkway-trimmed-with-green-grass

Oops, I had a cute photo and forgot to add it! Here it is :)

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I would do the thyme on the other side too to be honest.

As far as DIYing it, I would. I grew up in a family where people knew how to do this kind of stuff and we just did it. I fortunately married a man who can literally do anything--I have yet to come across a skill he doesn't have. So in lindseyworld it's very doable, but I have to disclaim that I know nothing about your skill level or what you feel comfortable taking on :-D

ETA: he is only marginally good at mechanics. For that he hires out or goes to his little bro. I've seen them put in a transmission using ropes and a tractor.

Thanks lindsey! That's a great photo. Is that your yard? OMG. I can't wait until our terraces are planted and it looks more like that! I really like your idea and would be happy to have thyme on both sides - we want to limit the number of different elements, and yes, my husband and I are both pretty handy, he built the hogwire fences around the yard and is a good carpenter, less of a gardener. Our only limitation is that the yard is in the middle of a 1/4 acre hillside lot so it's a trek up about 60 stairs to get there.

I'm a newbie gardener but my mom is a master. To do the seed on the straight side, I think I'd put down landscaping cloth to block the weeds and grass, lay some soil on top of that and seed it, water it and keep the kids off of it until it's established, right? That seems like something I can handle.

On the nook side, I'd need to do something to make it level, then put down the concrete or stone pavers, add soil and sweep it into the cracks, and then seed the soil and water.

Sound about right? I can consult my expert mom.

Oh my goodness I wish that was my yard! I've been lamenting my lack of landscaping. When you farm (as we do) any digging around and mucking about with plants is done to a practical end lol. Hard to prioritize the time to garden. I have often said that if I was magic I would have the most amazing garden in town because it is all there in my head, it's just a matter of limited time and money (and to be honest, skill) to bring it to reality. Ah well c'est la vie.

Sod can be so affordable and comfy to sit on. I would plant the outer borders to encourage birds, bees and butterflies!

I just did a little more research on the laying of pavers, looks like I need some gravel and sand but looks pretty do-able!