How big a TV do you have/want? Will it fit next to the fireplace? You might want to change the fireplace surround and mantle to get a few more inches. Filling in the niche with drywall might help, or can you enlarge the niche?.

I have a 65". I will keep the same size but would like to increase it to 75" if possible. I like the idea of changing the mantle and adding dry wall to the niche

If you post a floor plan with dimensions and overall dimensions of the room, it would be a big help. Also more pics, please.

What's on the other end opposite the fireplace?

Post a drawing of the space with every dimension - walls, windows, stairs, openings.

Removing a fireplace is complicated, but can be done, especially if your plan is not to use that fireplace.

Floor plan please every measurement clearly marked DO NOT start another post and make sure the plan is posted in jpeg format we need to see every wall.

Hi, sorry for delayed response. Here is the Floorplan with measurements. Need help.with tv and sitting arrangement. TIA 😊

Also would love to have your inputs whether I should go for LVP flooring with lighter tone and grayish color for modern look ? I am planning to color the walls SW Greek villa or Behr harmonious white

You can certainly remove the fireplace and niche and create a large clean wall. The positions of the fireplace and niche are confusing, and make furniture layouts a challange in any case.

Consider the following:

I'm not a big fan of an open kitchen in to the living room. I'm a messy cook and like some privacy when I'm trying to concentrate on cooking (while talking to myself).

I would install a wall or semi see-thru wall at the angle of the island and would accommodate a very large tv with a simple shelf/demilune cabinet. Paint that wall a dark color/black facing the living area.

Angle a large 96" sofa facing that angled tv wall with two lounge chairs and a classsic lounge chair and ottoman. Locate a long sofa table behind the sofa with a lamp and accessories.

Consider window curtain panels to finish room - ceiling to floor - could be as simple as a natural linen or open weave.

Not sure all the changes you want to make but FWIW there are TV mounts that rotate so you could fit a larger TV in the niche vertically and then pull out, rotating it horizontally to watch (perhaps add doors to hide the TV when not in use?)

I wouldn't remove the fireplace. What if you closed off the niche as mentioned, then the TV centered on the wall...not directly over the fireplace but partially. Sounds crazy but could work.

Don't replace wood floors with LVP. Sand and stain them the color you want. But the grayish look for floors is no longer trending. Light natural woods are more modern.

I think Denise Marchand has come up with a fantastic solution, And, unfortunately, probably the only good choice due to the limitations in this space. I have had my FR furniture arranged like this and I really liked how the set-up is not so "cookie cutter" looking. In an apartment I used just one side upholstered chair on one side of the sofa and an open wood accent chair on the other side. In my home with a larger space, I used a loveseat in place of the two chairs in her diagram.

I think building a non-weight bearing wall would be relatively easy to do. This is a great & creative solution that Denise has offered. My experience in doing this is that you have to be careful and not get a sofa that is too long. If you like contemporary, perhaps a sectional would work also. Just make sure to measure the furniture first.

Denise certainly gave you a great idea. Her first photo is a wonderful example of using diagonal placement.

Not enough photos, so help us out here.

Why not consider getting a smaller TV that fits in the niche? Then put a beautiful art work over the fireplace.

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If you have wood flooring, just refinish them. LPV is inferior to beautiful wood floors. As for gray floors, that's a trend on its way out. People who like gray can paint their walls gray and choose some gray furniture, rugs, or art work Warm wood with gray is a great combination:

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You've only shown us one photo--very limiting.

Here is how to post a Design Dilemma to get the best results. You need to show the whole space—all four sides of an entire space—even if it’s about one specific Dilemma.

https://www.houzz.com/discussions/6417709/unofficial-design-dilemma-boot-camp

Keep in mind that you're inviting some design pros and people with a design eye into your home via photos. If they walked into your actual space, they would take in all of it: all four sides, doorways, floors, windows, ceiling, trim--the "givens"--then the features that can be changed--furnishings, paint, art, rugs, decor items, etc. It's all one first impression. Same thing with photos. That's why it's important to provide well lit photos of the entire space, taken from all sides of a room regardless of the size of your problem.

Thank you for agreement, everyone! I always feel that in a difficult space, it's best to ignore the walls and create an optimum solution as to how the space will be used. I love angles, art, music and lighting. Also curtain panels. Oh did I mention, accessories from travels? It's so important to be in a comforting environment which mirrors our personality.

One more photo from the other end

I think the comfortable layout for your tv and furniture is on the fireplace wall. If you want a large tv, I would remove the built in and reconfigure your mantle to be asymmetric and longer than the fireplace box. Then the tv could be centered on the entire wall. You could also finish the hardwood (it’s real wood!) and maintain the larger kitchen dining space. I couldn’t find a great example, here’s the basic idea:

Beautiful floors. Do you have a dining room, or is your only dining area in the kitchen?

Placing sofa to face the fireplace will also create an entryway that separates kitchen and living room area. Put a slim sofa table behind it to create welcoming space as you walk in the door.

First of all, keep the floors! I would add doors and shelving to the niche and put the tv in there. How much entertaining do you do? Most of the time, it will be just your family there, but even so, I suppose it would be nice to hide the tv. While making dinner, it would be nice to watch the news. I have seen pictures where people have drop-down screens from the ceiling or have hinged artwork that can be swung out of the way when you want to watch tv, allowing you to have it more visible from the kitchen when it's just you and yours. It might be worth going to a techy store and asking them about what is on the market.

As previously noted, grey is definitely on its way out.

You could change the fireplace to a low linear FP and put TV above it

The problem with the fireplace and the cubby is that they are competing with one another for attention. The fireplace and its surround + the artwork over the fireplace should be taller than the cubby. I think this really, really needs to be fixed. After putting something over the fireplace- like a piece of art, that piece should be taller than the cubby. Having the cubby extend above the artwork over the fireplace will look odd, no matter what you chose to do with the TV.

The easiest way to fix that would be to remove the crown molding on the cubby and lower the cubby opening by 3"-5" by using a board to create sort of a drop ceiling on the cubby and then putting some trim to cover the now lower ceiling of the cubby. When trimming out the lowered cubby ceiling, I think it best to go with straight, under-stated molding and not the crown molding that is currently used because, again, the focal point needs to be on the fireplace.

A Samsung Frame TV was our solution to this dilemma. You can buy beautiful art on Etsy (less than $5) that is formatted to download unto the TV. It truly looks like a piece of art above our fireplace when we aren’t watching TV.

I like Denise's idea best, but it would require extending the wood floor into the dining area. If that's not something OP wants to do, I like jeannie_sang's idea to extend the mantle and put a larger TV (since OP wants a large screen) that straddles the fireplace/cubby area. I would drywall over the niche, redo all of the trim work to tie the fireplace and low cabinets into a cohesive unit with a mantle that extends over both, and center the TV above that. The great thing about those cabinets is they should give you space to keep all the cords hidden.

I would fill in the niche and keep the lower cabinets. Get a wall mount that extends and turns left to right, yiu can ouch the tv closer to the wall when not in use and pull itmout and angle toward the center of the room when watching. Although your niche can serve a ourpose if you make it smaller to house the wall mount and wiring from people walking by. you wouldnt want the TV on the stairwall because people will be walking in front of it all the time. I have my TV next to the firplace and not above it. I have art work above the fireplace instead

Concerning the floors (wood to tile) once the furniture layout is set, the flooring won't be an issue as there are other architectural elements going on in the space. Focus will be on the seating arrangement and area rug that will anchor the room.

Because of the flooring situation, I think solution similar to the picture posted by housegal200 would work best. I also agree with paperdiva, with mounting the TV on a swivel arm on the wall above the cabinets. Except that I think replacing the cabinets might work better and going with something a little lower.

To that end, I googled "asymmetrical fireplace TV" and came up with these ideas:

Denise’s idea is clever and would work, but it has the unfortunate effect of obscuring the fireplace. Jeannie’s fireplace-focused idea resolves that problem, gets rid of the awkward niche and avoids the need to build a wall. Using a frame TV makes sense, too. Here’s an article about the various models:

https://www.popularmechanics.com/technology/g38190182/best-frame-tvs/

You have beautiful wood floors. Please, please, please do not put crappy plastic (aka “luxury” vinyl!) over them. Especially do not put a. type of plastic “wood” in a color not found in nature.
I am looking for a new home and I keep finding nice homes that have been ruined with LVP and have to try to calculate how much it will cost to get rid of that crap and then the guilt of putting all in a landfill. Ugh