What else does the rest of the room have? Or style elsewhere in the home? I think repainting that top part would be most helpful, as it's not a great match with everything else going on on that particular fireplace. I see a wood wall, but do you have another paint color elsewhere in the room or is this it?

My father got a bit overly creative years ago and created his own paneling with poplar. It’s in the adjoins room as well. Not looking to redo the paneling as we’ll leave it as is to sell eventually.

Your goal is to ”debeige” with decorating. This looks like a comfy space but I agree it could use some personality. Replace the too small art with a colorful piece that’s at least as wide as fireplace insert & as high as space from mantel to ceiling. Looks like nice light in room - would a large plant in pretty pot live in place of heron / stork at right end of hearth? Using colors from the art, add a throw & pillows to sofa. Is there a TV in space? Seems like the seating is too close together & pointing 2 different directions - is there a purpose for that? If no TV could sofa be turned to face the 2 chairs & then put a bit more space between the chairs? Can the dresser be moved? Maybe to back of sofa if it moves to face FP? The lamp on it would be a nice light for reading on sofa if there’s a way to have it plugged in.

On my screen I see 3 different "beiges". I would match the top to the other walls. Large colorful canvas art - rectangular - that is at least 2/3 the width of the mantle. Decor is more pleasing in groups of 3. Do you have another lantern? If not put the 2 on the left side of the FP on the hearth with candles that are a color from the art. Remove the plates.

Something in this shape in colors you love. Living Room Wall Art & Canvas Decor | Great Big Canvas

Add athrow to the sofa and a brighter piece of art to the left wall by the window. It can be larger than what you have now and should complement what you put over the FP.

Looks like a very cozy space! I am not sure if the two little mats by the two chairs are a green, but maybe paint the top part of the wall above the fireplace, a soft green colour. Perhaps a colour like BM Louisburg Green. It has a little bit of gray in it but is a beautiful green.