I'd start by putting in a dining room table and chairs. While seating at the island can be nice at times, you're not going to want to sit down to your Thanksgiving turkey in front of your sink, which might just have a dish rack and some dish soap next to it.

Then, I'd think about separation. You want the back of a sofa or a console to separate the spaces, but you need to still maintain the flow. A rug can create a sense of the living room. Where will you put the TV?

I assume that the main entrance to the house is through the foyer at the bottom of the floor plan. Then the door at the top of the plan is to the patio--so you might not need to devote floor space to service that.

Rugs help to DEFINE space, warm a room, soften noise and don't "shrink" them.

Table Lamps/ standing lamps do a similar thing. They warm the light, cozy it in the evening, help to define seating areas, and receptacles can be added to floors, once you have firmed up seating arrangement. Lighting, and your space will not look good when it is all IN the ceiling. No to that: )

Notice..neither I nor Beverly above have suggested a sectional. ( I'm avoiding the visual "wall" at the dining view to great room, with a single swivel chair ) Sectionals are a very "costly" way to get NO flexibility in arrangement. Buy once with them, and be forever stuck with the seating and the arrangement. You WILL want a view of tv from the kitchen.

( change those island pendants, first chance you get. Builder/blah. ) and look like the 39.00 dollars they may have cost the builder. )

Accent walls are for amateurs. ART accents a wall. You don't need an accent wall. You need accurate dimensions

put to your drawing, for every wall and window. Your great room rug is probably best at 9 x 12 to 10 x 14.

Dining area rug at not less than 8 x10.

Don't put a buggy in front of a horse.

You begin with rugs, pull a tone from those for upholstery. Or buy neutral upholstery ( NOT GRAY, please. ) and then select rugs.

The point? You make a mood board for yourself, and you p.l.a.n. Whatever your style may be. Like a pro. Don't guess.

This is great very similar to what I have.
Unfortunately I did get light grey couch and the room is very flat. This is why I’m looking to add accent wall for some depth. Any suggestions?
I have the couch turned in the opposite direction of your sketch. While this works, it just closes the space off terribly, and that is a heavy traffic area to the primary bedroom.

You have no picture of what you currently have. I gave you what works best in the space and doesn't close off traffic paths to other rooms, and allows a view of the tv from the kitchen.

You bought a light gray couch. So? You have a rug? yes or no?

"The room is "flat" and we can't SEE your room- your pictures show empty space!

You don't need an accent wall and how does this close the path to a primary bedroom?

You need to show how you are currently set up. No mind readers here. It takes a lot more than a couch and tv to make an inviting room.

Show your space with the couch.

All that has been mentioned . I also dislike sectionals but my biggest issue with them is the fact that everyone is lined up and only 2 people get an arm rest and IMO arm rests =comfort. There is no need to do a physical barrier to create spaces the furniture does that instantly . I am glad to not see the corner FP. I do not strat my decor with a rug but wait until I get the furniture pieces in place . I don't hate accent walls but again only decided after all the rest of the space is done and thta includes the art since usually that is all you need. Lighting a huge deal to do right and again usually other than pot lights the rest after furniture arrangement.. New to you place so slow down and do it right, the best spaces are ones done over time with things you love chosen not all at once to fill a space.. Do you have AC if so in a space with not much height to the ceiling you do not need a fan s a breat place to add some interesting lighting .We have no idea about your style so at least post a pic of the sofa . Blank slates are fun and over whelming so take your time . You NEED a place to sit the watch TV a spot to eat and a bed to sleep on other than that every piece should be thought throug with a pla in place .

Thank you for your kind suggestions

Please excuse the realism, this is a shared space, they also have a play room but frequent both areas.

The tv is on the wrong wall, looks too large, looks too high.. I have no clue what is holding it up? But there is no reason it can't be mounted to the wall on the opposite side and lower.

You have a suggested floor plan. You have two wing chairs in blue in the dining room. If you hate them ? Sell them on marketplace.

Babies and toddlers are a fact of life .......their stuff is as well. But play time comes to an end and you clean up, Where are their rooms? The house seems more suited to empty nest living with a primary on the main floor. They're grand kids, perhaps? The playroom is the flex space? That's a very "kitchen" looking piece on the dining room wall. Coffee can't live in the kitchen? Why is the curvy couch floated away from the wall? You can't walk back there, have no need to walk back there.

You have navy stools . The rugs look lifeless with the paint and the sofa. Maybe start with those as you consider making a space that suits both small children and adults. Navy, gray .......AND an accent color.

No matter what, the issues have nothing to do with an accent wall. Clean/tidy it all up best you can, corral what you can, and reconsider your furniture arrangement. I'd include a console under the tv...long........that gives you storage for kid stuff.