Eliminating some of the corners on your furnishings will help with the space.

Have you considered putting a wall where the peninsula is with the 2 chairs? You wouldn’t lose any sight lines to the dining and family rooms. You could then move your fridge there and add some pantry cabinets. Is there a door on the wall labelled yard? If not the. you have more options.

A round table would make curves out of sharp angles, and chairs that fit mostly under the table would help, too.

Thanks for the inputs. . The Yard and kitchen is separated by a sliding door.

if you can..place fridge and stove on front wall of kitchen. Move sink to a bigger island. Establish good seating at this island due to its prominent position instead of the mini table w two stools. The dining table should be a shape that can be placed against the far right wall . Drop leaf? longer farmhouse style? removeable leaf?. You will use the island for the most part if you make it better...the table will have a space over to the right ....it becomes a more flexible set up.

Is the light colored wall on the end of the kitchen L a half height / pony wall, or does it go to the ceiling? Could it be removed? With such a tight space, interior corners waste space - a galley might be preferable to an L plus island.

26’ is a good sized space but not IMO with a sectional and I need to know a bit more as to what and where the windows are for sure . I don’t think cahnging the kitchen layourt will do anything for the dining space and when you post a floor plan all measurements need to be included along with all windows and their function and sizes. I assume that doorway is the entry . Is this a house or an aprtment? How many people need to be at the table on a regular basis?

Thanks for the response, its an apartment. Dimension is attached below with a photo of the showunit.
Dining require to seat minimum 4.

What climate are you in? Is eating on the patio / yard year-round an option?

Hot climate