Easier than too high cabinets would be to have shelves inside the closet. Remove top of closet drywall up to ceiling put shelves inside closet no need for wall decor

I agree a much better looking solution for sure I do see that this ledge continues around the corner so could you take a picture from further back so we can see the whole area

I've seen it done; makes good storage for off season blankets and shoes. You don't want something you access regularly; just twice a year. The trick will be finding the right size boxes and trim to fill any gaps that result. Then matching the doors to your closet doors. You could also do a larger box with bi-pass sliding doors.

You could as stated...but then everyone who sees them will spend an inordinate amount of time wondering how you access them...I think the idea of adding shelves to the inside of an extended closet makes more sense. An no you don't need to put wall decor above a closet door.

So we looked into extending inside of the closet all the way up and putting shelving inside, unfortunately because of the closet door height, shelving would be really aggravating since the closet door frame isn't that tall, unless we take the door frame up, we'd have to put everything at an angle to get things on the shelf, unless we took the doors up to like 9 feet or more.

We have the same thing in a guest room. In the meantime, remove the decor. Ours is empty and there is nothing to draw my eye up there.

If you did decide to drywall it, there is no need to hang anything up there. Honestly, those upper cabinets don't look very attractive to me, but that's just my opinion.

I think the easiest thing would be to replace the decor with large decorative containers. I have to agree with Kcooz--the extra set of doors above the closet just don't look nice in most cases.

Having the drywall built up and shelves up high will work for storing smaller items--better than what you have now at least. Does the closet go all the way back to the room wall or just as far as the ledge's wall?

I like Oly’s first example.

You can always, always, always use more storage!

Fori, just as far back as the ledges wall

Or you could do something like this.

No drywall required, just some wood.