I think the awkward part is where the tv is mounted. If you placed it on either side of the fireplace, you could easily have a sectional in that room.

Whenever you have the TV and fireplace opposite from each other it's awkward. It looks like, because of windows, you don't have another place to put it unless you're OK with partially covering a window. It also looks like it's mounted too high, but that is a matter of personal preference. As long as it stays where it is I think the sofa and two chairs are the best fit. You need a larger rug. :-)

I agree with Olychick. You might try the arrangment in the BAD sketch below to see if it works. I’d pull the rug up closer to the fireplace. You’ll need to leave a walkway between the couch and the railing. The TV will need an articulating arm so that it can be placed at an angle.

I’d try mounting the TV between the fireplace and the window, with maybe a console or table catty corner below it. You may have to move your cable or whatever is needed for TV hookup, but I think it’ll be much better than where your TV is currently located. (Obviously I don’t know dimensions of TV and corner space) Happy planning!

I would use the room with the console table and wedding photo as your tv area. Move the tv to the wall with the console. Float the sofa to face the tv.

Use the front room for a dining room or sitting area or play area.

I agree with @CDR Design, LLC, it looks like you have enough room for 2 sitting areas. If you moved your tv (easier said then done, I'm sure) above the console with the mirror and picture, then you could have an L shaped couch floating in front of that. Then you could make a cozy seating area with a couple chairs in front of the fireplace.

I think your TV is not in right spot. I would move it on either side of FP , sofa is facing TV and FP, and leave walking way behind the sofa.