Keep it but maki it higher. Why can't you find an insert, it looks like a normal size. Regardless, you can find the alcohol burning fireplaces that are everywhere now, and they are so cool. Only other thought is if you are going to watch television, the hole there is the right hight for a flat screen. I think you have a great opportunity to do something spectacular. Are you going with a hard floor instead of carpeting? I would if you haven't considered that yet

i vote for keeping a fireplace, but i don't care for the stone as it is..but if you like it, then it's great :) i have longed for a fireplace insert so i've done research on them. your space looks like it wouldn't be a problem, i think you should have a fireplace person come and give you some ideas. there is nothing more wonderful than having a fireplace.

I like it, but I think it needs a mantle to ground your eye. A horizontal piece gives your eye a place to rest and brings calm to the feel of your room.... then as someone else said a lower contrast between the wall and the stone would calm it down as well.

Paint the paneling - grey would be good. You could sheetrock & texture the stone, paint it an off white and add a simple mantel. Black firebox mesh screen

Well, I hate to be the dissenter, but I would kill for that fireplace and paneling, as is! What direction does your decorating taste go? That might be the place to start. I think that freshening up the floor with wood would make a world of difference in the room.

I just helped a friend with a similar dilemma. I used this as the inspiration for a clean more modern look. I would paint the panelling the same color as the new flat front fireplace until you are ready to do the builtins.

You have a great architectural feature. Leave the fireplace as is and add a large chucky wood mantel. Then ripe out carpet and put in a hand scraped wood flooring in a walnut or distressed finished. A neutral earthy color on the walls would look good. A black distressed or big old piece of furniture added next to fireplace would add character. Make sure to paint ceiling a couple of shades lighter. Good luck!

Plaster over rock, add mantle. Other ideas are all good.

You have AMAZING potential with this project! You haven't said what your personal style is, but I had a very strong vision of the ceiling opened up to expose rafters in a similar tone as your paneling. Built-in shelves flanking both sides of the fireplace would be great. Think display... Big squares with thick shelves & sides. The stone is kinda cool & retro, but if you're wanting to change it, wide linear tile would look amazing. Wood flooring in a brown mid-tone would have huge impact.
Definitely keep the fireplace! Is the problem that the hole is too big??? There are over-sized inserts that should be able to work? If not, you could always reduce the size of the opening, especially if you're intending to tile over the stone.
I see these paired with a mix of mid-century modern-inspired & clean-lined furniture & some fun pops of colour.
Good luck to you! Keep us posted on how it turns out.

It can be a little difficult to find the right gas-fired product for your application, but you might just need a little professional help.
Try a local National Fireplace Institute specialist: http://nficertified.org/pages_consumers/consumers-4.html

If you are ready to do a major facelift, I'd suggest doing something to update the stone on the face of the fireplace. The sloped ceiling doesn't need to pose a problem, but stay away from crown mouldings or other details that draw your attention to it. Here are some sloped ceilings to ponder:

We are putting in wood floors and the fireplace opening is short and wide. Inserts will fit but there would be a 6 to 8in spacer on the side. It is difficult to put the same size on the top because the rock is so uneven. The rest of the house is more contemporary. They start the remodel today but I have another week or so until they get to this room. Thanks for all the ideas!

Is the fireplace masonry or is it a manufactured box?

All of the photos I posted above are fireplace replacements, where we removed an existing manufactured fireplace and replaced it with something more suited to the homeowners current wants/needs.

If your fireplace is solid brick masonry, there are some tricks to re-proportioning the opening size so that a surround or "spacer" can be evenly proportioned on the top and sides.

It is masonry. Love that last photo.

The last photo is a <b>Mendota</b> Fullview direct-vent gas insert with a <i>Willow</i> front: http://mendotahearth.com/gas-fireplace-inserts-fullview.php

Hi mjmallory, Marie here. seems a lot of opinions but more importantly, it seems that the proportions are all wrong for the ceiling height - this is more than likely why you don't like it. Aesthetically, the smooth wood and large white stones is gorgeous together, but is overwhelming the space because of the proportions. Make sure that if you tear this down, that the firebox size becomes adjusted to fit your new gas insert. Big expense, but well worth it to do it right the first time. I'd remove the large stone and go with a smaller, simpler profile of white stone, as I like the high contrast. Important that you tie in the fireplace stone with whatever else is going on in your home - kitchen backsplash, or flooring tile etc. The slant isn't an issue if you are using either cladding or tile as any good tiler or masonry man will know how to apply properly. It is knowing what you want, then finding the proper person to install that product for you. Doodle on a quad pad different design options, use the 1/4" grid to mimmick the height and width of the fireplace and change it on paper again and again to get the actual work done right the first time - good luck! Here's a great supplier of fireplace cladding: http://www.eldoradostone.com/flashsite/

yes,hanging some crafts above the fireplace,or add a panel and place some decor accents. http://www.myhomewareshop.com/wall-decor