I forgot to add, we do plan on getting new carpeting.

I think part of the issue is that you have a lot of dark furniture and accessories in a relatively small space. Is this your only living area?

Yes what exactly is this room? LR/DR combo? I would paint it or cover with drywall and paint. The yellowish tone that is showing up on my monitor isn't complementary to the stone. Pick a beigy color from the stone. No gray. Too many mirrors. The mantle is high so mirror reflects nothing worth seeing twice. I would move the dining table (no rug under it) to where the 2 chairs and move the 2 chairs in front of FP for a nice sitting area. Art over the mantle with some color. Notice how these mantles are high and the art is same size as the firebox

If you have a no shoes policy then new carpet is fine. If you don't then consider hardwood or something that won't show dirt so easily.

If budget allows “You like more modern look.” Replace the pine walls with drywall. I tried the paint it route. Within a few years the expansion and contraction opened up cracks along the boards. Unsightly and painting cost was high. Then to restore cozy wood feel install hardwood floors instead of carpet. Is there hardwood under the carpet? Replace the brass fire screen with black/bronze. Mantle arrangement far too busy, rethink and no mirror. I think stone fireplace will look good as is. No gray walls or floors, gloomy and very outdated now. I agree with poster who said to switch dining area with the cozy chairs. A table with lamp or floor lamp will create a nice reading area and add an ottoman.

I think this room would look good drywalled, and the fireplace would look good against smooth walls. I would remove the paneling, and there is probably drywall underneath, and then I would put another layer over that to get back to the same thickness.

I really didn’t plan on decorating the mantle that way. It sort of became a memorial for our dog who passed in November.

This isn’t our only living area. We have 3 other living rooms. This is just the one that I feel needs work. This is most of the furniture from our last house. I didn’t purchase it for this space. I wanted to try to make what we had work and put money into other things. Thanks for the comments.

What do you mean really by "modern"? Could we see what the other living rooms look like? There's really no modern furniture or decor in this room, so maybe it's better to clarify what you mean by this. I think a lot of people say "modern" to mean "what people are doing right now", but in a design sense, modern design is actually quite a bit different from how most people decorate.

Here is a room similar to yours with a large stone fireplace and low-ish ceilings. The lighter color walls and furniture work well with the fireplace and make the room look cohesive.

Not a pro. I am confused by how many seating areas you have in that one room. Seems like too many purposes being served at once.