Something with a bit of color. This shows 2, but you could do 4 pieces of artwork. I'd beef up the curtains and put 2 more on each side - also.

Agree with the above, but one large impact art piece and the beefed up curtains should meet with a little fullness when coled, and when open clear the window completely. With your beige walls you could reLlypop some color in the art and also with the rug. What are your favorite colors that pop?

Do you have enough storage in your kitchen? Do you need somewhere to store extra party dishes, glassware or platters? I would be inclined to add a kitchen-matching shallow (12-14” deep) counter-height cabinet since there appears to be plenty of room. I assume this is the breakfast area, not the dining room.

Art above a slim sideboard, possibly with storage. Tweak the curtains.

Once you are satisfied with the furniture and storage, I would suggest you look at round rugs 4’ larger than the diameter of your table, or rectangular rugs which fit the room with 10” of bare floor showing.

Agree with felizlady above about narrow piece of furniture for extra storage and a colorful, fun picture, poster above.

https://www.houzz.com/photos/historic-main-street-traditional-dining-room-boston-phvw-vp~168194249
Your feature wall is the window wall. I’d concentrate on that…..storage stacks on either side of the window with a nice bench under the windows. Pretty idea above

Do a bold big print colorful wallpaper on wall...needs something

Either a large piece of art, a gallery wall of art and/or photographs, or interesting wall storage…preferably something with clean lines that coordinates with the mid century vibe in the dining area. Skip adding another piece of furniture…it will crowd the airy space you have now. (Plus it looks like there’s a peninsula cabinet that opens into that dining space.) A simple Roman shade at the window will keep the space open and bright during the day and offer privacy and warmth (if in a cold climate) at night.

A larger rug is also needed

This would be lovely. You’re lucky to have the perfect space for it!

I have that exact breakfast nook area. Used to have various collections of art on that wall. Recently added large piece. Not everybody’s taste but very happy with it

Here

I agree with one large, colorful piece of art. I would not add furniture unless you really need the extra storage.

Find curtains that look good/coordinate with whatever art you decide on. I think the below size and scale (and color!) would look nice.

Boy, I agree with most advice you have gotten here. If you decide on big art piece, just take your time and find something you really love that also looks good with the reat of your decor. I like to shop at Allposters.com. You can get fine art prints or canvases. Art.com also same company. If you get a print, framing always cheaper on the site than having it framed. Free shipping and free returns if you don’t like it. In my case, however however, I could not get this particular image I wanted big enough so had to order somewhere else and have it framed. Mine is 36”x48. Could have been a bit larger.

I like your curtains but would follow previous advice to beef it up a bit with more panels.

Fun!

A large piece of artwork might work wonderfully in that area.

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