Properly hung curtains will be too close to the fireplace and you don't have enough "stack-back" space on the sides of the windows. Stationary panels should lie against the walls and just kiss the glass edge of the window and the floor. Inside mounted cordless shades would be better for you. If you need privacy, then top down/bottom up shades are a good choice. I would match the living room treatments and the ones in the adjoining room since they "read" the same. Any alike windows visible from this room should probably match the window treatments you use here.

Your rods should be mounted above the transom windows, not below.

I think you should put the rod 3 inches or 4 inches from the ceiling on each side of the fireplace leave the side window there and put a lamp or a plant in front of it it would draw the eye to the fireplace more

I vote no curtains! We have a very similar room and we have nothing.

I agree with A D—no curtains. Your existing curtains appear to be very sheer, so I assume privacy isn’t a concern. Our entire kitchen, dining, living area is curtain free, and we love the view.

Agreed. You really don’t need. If you choose to have curtains I’d do from the ceiling. And a much much thicker material and panel.

Transom windows are very common where I live and I have never seen anyone hang a curtain that covers both. Not to say its a bad idea, It just seems that most people leave them uncovered. Mine are uncovered with shutters on the lower windows. It is not ideal. But having a one foot by one foot shutter or shade is weird too. I don't do curtains due to I want things easily cleanable.

Transom windows are not to have curtains. Privacy is not an issue, they are for added light. In your configuration I would treat them as if the transom's are the squares above the window where the curtain is now. To properly hang the rod just above the casing and below the transom I would split the difference. What's above your usable windows should be treated as a divided light feature of the window below. One panel hung at the ceiling covering both the decorative/skylight windows and the window panes is just not a good look. You aren't going to put a curtain above the fireplace so all those high panes should be left alone. But frankly I think how the curtains are hung now is perfectly acceptable and I would not add more holes to your walls and just get new panels.

If you need privacy, maybe consider automatic roller shades. They are much neater looking than those curtains and hardware that are doing nothing for those beautiful windows.

You'd want to put shades in the same fabric on the side windows, especially since there's no wall space to the left of it. Better yet, put shades on all the windows due to the fireplace and the busyness on that wall.

I agree the drapes are too close to the FP so some nice shades of some sort will be best . The transom windows above the FP can have permanent solor shades installed to keep out the UV rays and the heat . I would just do solar shades everywhere and then decide if you need drapes I like the windows as a feature do you need privacy ? A bit more info could help.

I’d leave the top windows bare and do corner rods (under the transoms) for the others.

Or do your tall curtains on the fp wall, Roman shades on the sides:

You could pull them to one side:

Or not:

Or keep the rods as is and use heavier curtains instead of sheers:

No curtain look with shades ( I think shutters would look great on your windows, too):

Thanks for all the ideas! We do not need privacy on this wall, there’s a forest outside the windows. :)