Can we see the whole room?

Looks like a good place for a TV with a couch diagonal across the room...but we need more pictures.

Here are photos for the rest of the room. The room doubles as living room and somewhat playroom for the kids. We are not having a TV in the room. We want nice amount of seating , a coffee table, and for it to feel cozy. Maybe a desk.

I’ll let the pros weigh in on layout but for sure I would bring that sofa off that short wall in front of the closet and float it in the room

That wall would be a perfect place for a large piece of artwork.

Since the space is near the kitchen and a toy closet, floating shelves could be a great way to display books, toys, or decorative items without taking up floor space. A small writing desk or console table could add function without overwhelming the area—especially if you pair it with a chair that tucks in easily. A reading nook could work too, with a cozy chair, lamp, and maybe a few baskets for toys or books. It really depends on how your family uses the room most.

@bergen is floating shelves weird perpendiculars to a window? I am thinking floating shelves on top with the last bottom shelf being a writing desk.

Is there other furniture & lighting planned for the rest of the room? some chairs and a coffee table, plus side tables with lamps would make a big difference - if it were me, I’d tackle the main seating area before thinking about the niche

I see nothing cozy at the moment so IMO first get the furniture you need then see what thta wall needs this is too early in the plan to worry about it. I need a to scale floor plan since right now thta sofa is all wrong where it is . How many seats do you need to enjoy the space , what is your style ? Too little info to help.

Float the sofa closer to and centered on the fireplace, add a console table behind the sofa with a cordless reading lamp. A side chair to the left of sofa (while facing the fireplace). The niche is a great space for an oversized chair near the window for snuggling with the kids. A small writing desk with a lamp and chair tucks neatly into the space. Art introducing some color into the room will make the space warm and inviting. Have fun with it.

You’re right, I first need to get the room together and then figure out that wall but . I will be putting a new sofa in the same area it is now but more centered and floating and then I need two side chairs and a coffee table. The reason I wanted to figure out the wall is to figure out where to put the side chairs. If I can block that area or not. If I put the side chairs adjacent to the closet in front of that niche I don’t want to close up the room and then have that dead space behind the chairs

These style of bookcases are anchored to the wall and will bypass the baseboard heat.

It seems like you are running after ideas rather than thinking about actual needs.

Who would use a desk there, when, and why there vs somewhere else in your house?

Floating shelves - do you have something in particular that you are trying to display? Do you need more book storage or are these just decorative shelves that you then have to figure out what to fill them with?

You have a toy closet in here. What is the floor space that you want to have open for the kids to play in?

Have you already ordered the sofa and chairs? How many people do you want to be able to sit in this room? Will they read in here, hang out as a family, have friends in here? Is this different from your living room and your TV room - how?

Define these issues first before deciding how to fill that space.

That corner would be a great play area. May we have measurements of the room so we can put together a 3D rendition for you. Please include the width of the windows, fireplace, doors, and especially The area next to the toy closet.