Lots of possibilities!

How do live — kids? Pets? Entertain often? What room/door goes to it? Do you like gardening? Want a hot tub? What is the view from it?

Hi! i have 2 dogs, and no kids. I entertain frequently. I am not much of a gardener. I attached more pictures of my backyard. excuse the work in progress, I had major tree damage two months ago. i am having a privacy fence installed next week. First photo is view from stepping out of the back door. the small patio is to the right. The second photo is looking to the left.

I like your pergola!

I wanted to share these ideas (search small patio ideas for others):

https://www.drivenbydecor.com/simple-outdoor-decorating-ideas/

https://www.mydomaine.com/small-patio-ideas-5095817

https://www.bhg.com/home-improvement/porch/outdoor-rooms/cheap-backyard-ideas/

https://www.houzz.com/photos/small-patio-ideas-phbr1-bp~t_725~a_30-231

Even with your other seating area, maybe you could still use a couple of comfy chairs and side table? My patio is a similar set up as yours and we have two large rattan armchairs, a table in between, a rug, lots of potted plants, lights, and a potting bench. It’s really nice sitting there.

Not sure if you like hot tubs, but it sure would be a perfect spot for one. :)

For entertaining, maybe some sort of outdoor game area?

https://www.countryliving.com/entertaining/g2477/outdoor-games-to-make-this-summer/

Other styles of seating:

I’m an avid gardener, so I’d be filling the area with plants and more plants. Potting bench, somewhere to sit, plant stands, etc. :)

What are you looking to do then, what are some of your thoughts?

Raised planters for gardening

Hot tub

Enclose and make a sun room or mudroom

Make it a storage area so you can get rid of the sheds

outdoor kitchen area with bbq

If you entertain a lot, an outdoor kitchen could be amazing.

thanks so much to both of you! I am wanting to put raised planters along my left fence line. I am definitely entertaining the idea of a hot tub or an outdoor kitchen now!

Cornhole, dart board or other games; maybe table tennis?

You have a big yard, most of which is lawn, which requires so much maintenance. Instead think about using hardscaping and landscaping to create zones for you and your guests with less lawn and more activity areas.

I would turn to patio into a lounge/bar area where people gather before barbeque. I can easily picture people seated along the wall where you can place long seat cushions before parties. Use your table as a bar with beautiful oilcloth tablecloth under the windows, seat cushions along the wall, and a few garden chairs and small tables. It wouldn't be complicated to add steps to enter the lowered area.

Encanto Palmcroft · More Info

Showing this photo so that you have at least one fairly easy garden to look at from all areas. Note all the mulch, stepping stones, grasses,

San Francisco Japanese Garden · More Info

and perennial shrubs that really don't require as much attention as lawn once installed. If you're determined to maintain that lawn, then shrink it down by a lot.

Contemporary eclectic Japanese inspired garden · More Info

Wall seating, small wall, slate and gravel pathway that could lead out to your pergola for dining.

Backyard from the deck · More Info

Planters and fencing:

Mountain View Contemporary · More Info

Thanks so much for the ideas!

As usual I have different ideas ...

what about a game space?

shuffle putt is super fun...its like giant shuffleboard

giant chess?

dominos, scrabble...etc...

The uneven surface of your pergola and patio will make it difficult to maneuver chairs around a dining table (as others have noted on Houzz). I would make the area outside of your back door, where the pavement is level, your eating area, grilling area, etc. And reserve the pergola area for lounging. A fire pit could work on the patio area to the left leading up to the pergola. Under the pergola I would have a seating area, coffee table, and then twinkle lights strung under the pergola for night time entertaining.

Here is an idea:

Set up a barbecue to turn the place into an outdoor kitchen.

Some options