I'd switch couch with loveseat and center the LS under the window. You might need to move the end table but you could always use a floor lamp in the corner if the table won't fit.

The first thing I notice is that you have several styles going on in this room. If you could find an inspiration room that you like that may help. Maybe paint the walls a light grey, get rid of the coffee table and add some art (above the love seat) that includes that intense blue color of your rug.

Ditto, to all of the above comments. Never tie back panels. Replace with a black and white color block, or a chevon print. on windows ends only. Replace blue rug with a graphic design in gray, black and a yellow. Ikea has one $20. 5 x7 centered switch sofas and pull way from walls, never put furn against walls. Get a round coffee table in glass 36" . Put a large 40 x40 art over sofa center over sofa hang 7" above sofa back. Add accent color pillows to sofas. Put much bigger taller lamp on corner table in a color base and black drum shades. Remove small mirror. Add palm or bamboo to corners. Use big books on coffee table. Then really important paint. A dove gray with white trim.

Push fish tank into that corner angle next to it on wall hang mirror you now have on firepl. Hang it vertically and 20" from floor. Remove all items by FP. Place 3 tall silver candlesticks to one end only. Add a tall 3-4 ft and 24" wide art, in color. Hang 7" from top of mantel. Place a big basket and fill with firewood on floor to right of FP. Remove that blue and white cloth from TV leave bare.

I don't think sofa will fit on other wall. Leave, but pull corner table out and towards the big chair more. You need to push sofa towards the corner. Get it away from slider. Get a smaller table for that corner so more room for sofa, to move dn. instead of lamp put a tall stainless floor lamp in corner. Ikea has them.

Since chair is staying still add art as above just center on wall not chair.

Remove bookcase, just clutter. Add to floor 3 canvas or big baskets to fill with toys etc. can add art to that area too. Use bright colors. 40 x40 no frames on art. Keep a contemporary look going.

Thank you guys so much. I appreciate all of your help!

Your blue rug could work if you introduced some art above the sofa with some of the same color or at least equally strong colors.

Paint the frame above the mirror a darker color even black.

Stencil a wall in the rug pattern if you like it and that way if you choose a new rug, you still have the pattern you like.

I switched the seats, got rid of the table cover on the entertainment system, changed the mirror to the black ones and I focused on a more modern theme. I still plan on changing the curtains and looking for a new coffee table.

I still have a lot of work to do so any other insight anyone has is much appreciated. Thank you.

I like the brown mirror over the fireplace. The orange pot and pillow are great. I think I spy a new aquarium too! Keep hunting for the perfect coffee table and keep your eye out for art that you love.

I see two crucial things in my eyes. One is the ceiling color needs to be lightened and not the same as the walls. Secondly, I would change the focal point of the room so the sofas face the fireplace, and place the television to the left of the fireplace. See how furniture placement and focal point changes that. This way, both are utilized and not separate. Fishies can move to the right of fireplace....

Me again...bring the sofas off of the walls altogether and form a grouping facing fireplace and move TV as I suggested in prior comment. Remove fund clock to a different wall, away from fireplace and fish (which need moving). Someone suggested a different rug and I agree, in that it would help to lighten the feel of the room.

Sorry me again!!!! After looking at all photos, I get why you placed furniture the way you did. But in the end, it appears as if this room has been accommodated to function merely as a pass through, with nowhere to stop and really rest. I still stick to rearranging sofas to have you walk past the windows and bring furniture in. I hope this makes sense, as I can picture this in my head....

I am an ASP/IAHSP home stager-- kind of like what you see on HGTV... Only nicer to clients! The permanent focal points/furnishings are mahogany brown: fireplace, couches, curtain rod and hints of it in your table top. I would by default work with those. Sounds funny, but you must coordinate with permanent colors.
With that being said, you must have 60% of one color, 30% of another and 10% of a brighter color.
60% is the color you decide for the walls. Off white? Light gray/green (which is what I would do!)? Or light blue/gray?
30% is the mahogany brown of your couches, tabletop, fireplace, and curtain rod. Keep it at that amount. No more of that color.
10% is a eye-catching color: If you go with light gray/green, focus on the opposite side of the color wheel for the eye-popping color (red). If you go with the blue/gray, pick a color from the opposite side of the color wheel (bright yellow).
Now I would also add about 5% white, just my own personal taste: Including your drapes-- LET THEM HANG FREELY BY THE WAY! :)
Take out the rug too. Open up the space.
I wish I was there to help! You wouldn't happen to live in the Pittsburgh area would you?

What about painting the mantle and wall above the fireplace orange? Pull the rug in front of the fireplace and as state, place the tv angled where the fish tank is. Put the 2 couches in an L (one facing fire place the other to the rt of it. May need to get rid of table. Put fish tank on back wall where couch currently is. Get an orange blue white throw for the couch. Take wind chime off fireplace wall. Get a branch, paint it white and put in vase on fireplace. Get a sofa table to put behind the one couch that will now face the fireplace.

Will the rug fit if you turn it 90 degrees?

You have been given several great ideas! My added thought would be to mount your curtain rods closer to ceiling for added height effect. It would probably mean new drapes that could come to floor or even pool at floor for more dramatic effect. Take a look at so many photos as it makes your room appear larger.

The focal point of the room is the fireplace-- good job, Tammy! Stick with the whole wall rather than the immediate fireplace area; Go two shades darker than the other 3 walls for the full focal wall (or) do complementary colors= light beige for 3 walls and gray/green for the fireplace wall. Another option is very light gray for 3 walls and blue/gray for the fireplace wall.
Whichever color you decide to go with for the focal wall, bring into the room with a matching throw, hints in a pillow, a vase... Just don't over-do it. Again, I wish I were there to help!

I'd also remove the rug altogether.

I love that rug! It's beautiful! Bright and happy. I'd keep it. I would however get rid of the leather couch and love seat. If it's in your budget buy a light grey colored set, or even an orange. Then I'd get the art that was suggested. Redo those curtains, buy something bright and colorful, try fabric.com. Awesome fabrics and curtains are easy and simple to make. I think the black furniture drowns the room. And it sounds like you want it bright and cheerful.

I would do away with the blue carpet, and replace it with light beige carpet.
The mirror is Iain the wrong place and unless you find a bigger one to pace in a convenient place, remove it altogether.

The curtains are alright and it will match with the beige carpet. There is no need to tie the curtain, it is meant to block as well as give some little light to filter through the window.

Most unhappy Dilemma's are due to hulking dark leather lounge sofas and chairs. That's is the biggest change you can make to your space - go light and lively with your blue and orange and get seating that is neutral so that when orange and blue are too much, you can switch to other colors and still keep the room feeling light and bright.

I just bought the couches this year and my husband loves them. I am considering to get rid of that rug though. It was an expensive mistake if I can't make it work out w the couches. These curtains would be to much? But what if I took the rug away at added these.

Maybe add a painting or framed photo above the couch next to the doorway

I love the rug! The curtains are the same design.... I say keep the rug and find other curtains

Work on getting your furniture moved.....

If you want to tie the colours together I would suggest dark blue curtains to match the rug. I would also paint/ swap the smaller furniture items to white, including the fish tank. You might consider painting the brickwork white and adding potted plants to either side. You could also consider using the same blue or the orange you like to paint the wall above the fireplace. Get rid of the yukky flowered cloth under the tv and remake the dog bed in fabric that suits your decor. New cushion covers in blue, orange and white.

Keep the lounge and rug - you can easily make them work.

Those black and white curtains you're thinking about aren't going to help in my opinion.