I think the space could be a bit more exciting.

I like Beverly's suggestions for seating. I would not put a mirror on the mantel, but find a great piece of art; a colorful painting you love, then use some of the colors as accents with pillows, maybe an area rug and/or accent chair. It's a really pretty room. You could bring in some color and pattern if you want via some new draperies, but if you prefer the quiet style, I'd still get longer ones and hang them straight without tying.

This might be another arrangement option, Maura, if you want to use your existing furniture. I added floor-length draperies, a coffee table or ottoman, a round table with lamp, a floor lamp (or a small table with lamp could go there; is there a small table currently between the two blue chairs?), and a tall tree/plant behind the sofa.

Personally, I think the mirror could go over the fireplace, with something wider over the black cabinet. The wall right of the fireplace would probably then need a second art piece in the area over the chair, and the wall left of the fireplace might also need art between the tree and floor lamp if they leave too much empty space there.

Whatever you decide to do, I'm sure it will be a beautiful and comfortable room!

Great ideas, thank you! I want to maximize seating and I have seen photos of 2 two seater couches and 2 arm chairs. Anyone have a visual layout on how I could arrange with two couches and 2 chairs?

I could go the sectional route, but I don't want to have our backs to the window.

Here are a few options, perhaps?