I love your room! So many great pieces of art and furniture. I think you'd have to be more specific on what your budget is and what style you want to build a new look on. Please, no sectional -- it would be so our of place in this room and make the room look very common. Also, your color preferences would be needed.

Your furnishings are beautiful. You don't need a sectional. There's nothing you can do about the off-center fireplace, but here's a way to connect the chairs conversationally. Here goes:

--Put one of the wing chairs at the end of the coffee table and the other at the other end of the coffee table. This will give you a passageway. Relocate the slipper chair to the corner by the window with a floor lamp or sconce lamp behind it for reading. That will balance out the plant. Relocate the round table and lamp.

Why would you want to pollute such a lovely space with a big sprawling sectional? Your current couch is lovely (I love old fashioned wood-framed couches).

I agree that the room might benefit from some rearrangin, but I don't think you need different furnishings.

Here's a plan to scale so you can cut out some little sofas and chairs and push them around.

No sectional. Two sofas and three chairs will give you much more flexibility and will allow the use of occasional tables where needed. A sectional only looks good when all the parts are put together, but it makes it hard to have any necessary tables. You can use a sofa and one chair in a conversation area near the fireplace and the second sofa and two chairs in a slightly larger arrangement in the larger part of the living room.

Put a chair where the grill is. Clear off the mantel, and put large art or a large mirror above it. I doubt that you’ll spend a great deal of time looking at the fire.

I love everyone’s suggestions and appreciate the scaled floor plan! I’ve been so on the fence about the sofa but now I’m convinced to stick with it.
I also have a large ivory, blue and peachy rust rug (11’ x 15’) that I was thinking of using instead of the smaller rug. My thought would be to recover chairs and sofa and repaint the walls based on the colors in the rug. My fireplace will be a sealed unit with a glass front (which legally is the only choice I have because original fireplace is so shallow) which frees up floor space (no hearth needed) and the rug will fit.

I’m thinking of focusing on the blue, ivory and peach color and was thinking of neutral walls maybe ivory or something like that -and adding the color in the upholstered pieces and/or changing out lamps and window treatments as well.

One last thought my budget is pretty open since it’s a complete redo!

Additionally while my house is a Victorian my style is more transitional/traditional.

I love that rug and would suggest that it's pulled more under the legs of the sofa to ground the conversation area once you move the furniture. I've always found that a rug you really love is a good pallet of colors for the rest of the room.

That's a really pretty rug and a great inspiration for your color palette. Remember the 60/30/10 rule: 60% for your main color, 30% secondary color, 10% accent color. Ivory with blue and accents of peach would look great.

Please find a beautiful piece of art you love for over the mantel. This room deserves it.

Beautiful rug! Following

What a beautiful room. Love that rug and build around those colors. Going to hunt for some inspirational photos for you. Love this project.

Ok. I invented a room using your rug as inspiration. I have kept furniture in tradition of your home and i think this room would look awesome with darker blue walls and then contemporary art over fireplace to bring twist and lighten feeling of room. Just some ideas.

Some rooms i borrowed ideas from.

Don't forget that you can gain wall space by simply closing one set of pocket doors.