Maybe try a tall fake plant in the corner to block the

I feel claustrophobic just looking at your pictures. I don't, however, mind the door in the corner or the split AC unit. The sofa has such a presence, I don't really notice them.

I'd pull the sofa away from the walls by even 5" if you can to give the illusion of a little bit of space, won't feel like the walls are closing in as much. I want to see lots of circular shapes in this small square space. I'd like to see a circular mirror in here. If it were hanging on the split AC wall somewhere, what would it reflect? I'd also like a circular rug, small circular drink table next to the chaise arm, and I do like the idea of a corner big arc floor lamp coming from the behind the sofa in the corner near the door. Again, I'd like a circular globe like shade.

I’d do something to emphasize the nook-iness of the space, instead of fighting against it…darker paint, or a wallpaper, big rug covering most of the floor and I’d go that little bit further (but more money than just decorating) and do something with the opening of the nook to create a true separation between it and the other room even if that was just extending a foot or more and creating a wide framed opening instead of it being the foot of an L shaped space

Return the sectional! Then start over.

Can you post pics of what is across from this nook and next to it to the left? Is this on a first of second floor and is this the only TV gathering place in your home? How many in your house hold? Will you be having guests in here too to hang out of is this just a chill family space?

I agree with shirlpp - if you can return the sectional do.

If you can return just the chaise section and get an arm chair end it’ll work fine with Celery’s suggestions.

You can lower the profile of the door by removing the trim and changing the door to something more low profile - there are tutorials online

Finally someone with a space smaller than mine. If you have to keep the sectional - at least you have a lot of seating. As others suggested, art, an area rug, just make it a pretty space regardless of the size.

I love it. it’s a small space and you have made it useful. I love that this room has one purpose - to watch TV. Get a fuzzy, cozy rug and some pillows. add art on the back wall.

My TV room is similar. I used a black and white shag rug and only black and white art for a movie theater vibe. We love it.

Thank you everyone for your comments. This is not our only living area - it is an extra one in a basement type area. I bought the sectional because my main priority was lots of seating. It is also a sleeper sofa. I love so many of your ideas - thank you so much!!

If you go with ottoman instead coffee table you get extra sit. I would put mirror on the door as window imitation.

This is a basement hangout spot? Well, hell, that's a horse of a different color. Who cares about the split AC or seeing the door. You need to focus on cozy fun hang out space. You've got that with the seating and TV. Just add a fun high pile rug that feels good under foot and art above the sofa to the right of the door. A super casual round coffee table for drinks and snacks is smart too. Don't over think this space.

That looks like a lovely bathroom right next to this TV sectional space. What else is going on in this ’basement type’ area. Is it a basement or not?

Embrace the size of the sectional, as you wanted a viewing room and add cushions, some throws and a rug.

Suggest painting the wall behind sectional a greyish black to make it really cozy (include door/frame, so it won’t be noticed). Large art will draw the attention away from AC unit.

Above the table, suggest a black mirror and a shorter lamp, to tie the whole feel together.

It's hard to tell just from pictures, but if you flip the sectional so that the chaise is against the wall and the tv would be on the wall where the door is, the chaise wouldn't visually block the entry to the room. It will give it a more spacious, open look (by a little bit).