What's your style? Do you like modern or more traditional?
The wood paneling has a sort of midcentury modern vibe that I quite like. Would be nice to go that way? Add sleek, modern lined furniture, a bit of colour....

And definitely change the boob lights on the ceiling. They are just wrong ;-)

But it would be good to know what style you like.

I think I'm more traditional, but relaxed -not stuffy antiques. I like comfortable, soft things. Sheepskin rugs, overstuffed couches, big pillows. Clean, but lived-in. And I like white, but with splashes of bright colors. I think that's why the dark wood in the new house is scaring me.

I love the wood and agree with carolins that it has a midcenture modern vibe. It can look very modern but you are going to have to change out your couch, chandelier, etc., to tap it's potential. I'd love a lot of white furnishings with it. Clean lines, but comfortable. Is that a scalloped valance or something in the dining room over the windows? If so, i'd remove that, if possible, as that dates it a bit, I think.

You don't paint mahogany. But the ceiling... that's another matter. What is it... looks like masonite?

I actually like the ceiling more than the walls. They are solid wood, too. Wonder if there is a way to hang sheet rock or something over the walls without permanently damaging them?

Drywall?

I think you should consider adding some contrast to the room. I would leave the mahogany wall, and then replace the wood ceiling panels with painted drywall. And yes, start all over with new lighting.

Paint the ceiling white, to start with. I agree with cgmorley, the wood panelling really dates the room, time travels to the 70's and 60's.

Unless you want to redecorate, using mid century modern style furniture, then the wood paneling could look cool. Still, paint the ceiling.

Strip and sand paneling down to wood. Use lime paint to fill the pores then sand off excess lime. Seal witl a clear finish. On our houzz we have some pictures of limed walls under th Decape heading.

You could live with the paneling for a while. You can always paint or cover it up or remove it later. Meanwhile, you can use overstuffed sofas and combine them with midcentury modern style accent tables. A modern lamp... to not make it too cottagey and out of touch with the paneling and style of the house perhaps.

You worked well with you design and you belend it with your style.

I m thinking Dont paint the walls,if you work with ceilling as other suggestion and change your lighting it would suit your style

I don't think you should paint the walls. They're rather magnificent. Without seeing the whole space, perhaps the wall with the window (not the doors) could be covered and painted, in which case I'd pick up on the carpet colour for that. Just to stop you feeling you're living in a wooden womb. Or woom. As opposed to room. I picked up an example of the kind of drapes I'd like to see in a room like this -- both bold and pretty. This one comes from Kast Fabrics.

I would paint paint the inside squares of the ceiling white but leave the "beams" as is. Leave the walls but add a lot of light art on the walls, a large mirror. If you want to do photos use oversized white mats with them. Use light furniture and fabrics. I would also use spotlights and lights over art to lighten things up.

Hello Jamie I agree with some of the other posters...white furniture white ceilings with spots( drywall ceilings and add spots) never underestimate the effect that smooth ceilings can do....while your at it the wall along the french door should also be dry walled. Leaving the one panelled wall will maximize the effect This will lighten everything I suggest large white canvas modern art abstract with texture. Dont go overboard with mcm but a suggestion is good within the style of the furnishings and lighting. . This could be such a beautiful room:)

I had a shore house built in 1978 with wood paneling almost everywhere so I feel your pain but in your case I agree with others that the ceiling is the issue. Can it be opened up to the frame? If not, drywall and recessed lighting might give the room a brighter feel. I solved my problem by selling it (8 days before hurricane Sandy washes everything away). It me realize there can be worse things than living with paneling.

There are some inspiring ideabooks on Houzz, such as the one below. Here's the search: http://www.houzz.com/ideabooks/query/%22wood-paneling%22

https://www.houzz.com/magazine/how-to-update-cozy-wood-paneling-stsetivw-vs~1028346

Please do not cover up the paneling with drywall, it might cause moisture problems.

http://homerenovations.about.com/od/drywallsheetrock/a/Drywall-Alternatives.htm

It's a lovely room and I think you're right not to paint the walls. Great accessories will brighten up the room and a mirror or two will add light. Make sure your accessories are 'strong' enough so that the walls don't overpower the room. Judging by other panelled rooms, many people add white or light furnishings to balance it out. Oh, and definitely change the ceiling light!

In the USA...it's more about whether it's real wood or fake paneling. Real wood adds value to homes.

I think it's beautiful. I would lighten the wall with large mirrors and art.

These pieces came to mind:
http://angelina-vick.artistwebsites.com/featured/three-feeling-black-angelina-vick.html
http://angelina-vick.artistwebsites.com/featured/three-feeling-yellow-angelina-vick.html
http://angelina-vick.artistwebsites.com/featured/three-feeling-freesia-angelina-vick.html

You could make the space look more modern by bringing some black in and giving it a heavy white frame.
Like this:
http://angelina-vick.artistwebsites.com/products/three-feeling-white-angelina-vick-art-print.html

You have plenty of room to make a collage on that wall.

Ah! The options I chose for examples didn't show in the link. Here are the screen shots.

The dill is nice and classic, http://angelina-vick.artistwebsites.com/featured/the-dill-3-version-2-angelina-vick.html

Some ideas for you.
http://angelina-vick.artistwebsites.com/featured/photo-displays-angelina-vick.html

What are you thinking? Are you going to paint the wood?

You're welcome Jaymie. =)