Am 6 feet tall. Not sure I could deal with 7 foot ceilings. Am assuming the ceiling is applied to the bottom of your floor joists but if it isn't and is furred down could you raise it to at least 8'-0"?

If the air con thing has to stay there,I would consider hanging a substantial artwork below it,then making the window treatments equal on either side.
Once that wall is in balance it should be fairly easy to arrange other sofas ,chairs and tables to make a nice flow in this promising space.

You have 3 large pieces of furniture on a rug floating in the middle of a large room. The drapes on your sofas are warm colors, as is the tile behind your TV. The cool gray paint does not go with these earthy tones.

I'd start with a reading or conversational nook over by the windows. I like looking out of my windows, so I'd get swivel chairs.

Sw alabaster is a nice choice for sampling all four walls and ceiling to open things up even over the (?) material that was used on tv wall. A green mossy colored sofa that Beverly posted would look nice.

Is that an electric fireplace? Or gas?

@justcallmepool The "wood" accent wall is just contact paper. I was thinking an oak slat wall could look nice there.

@Norwood Architects As much as I’d love to, raising the ceiling isn’t possible.

@Sigrid The furniture, drapes, and wall color are all going.

@Alice The fireplace is electric. Not sure if I’ll keep it, or where it would go if I do.

LM, ok good to know! I was thinking if you could move it or if you wanted to keep it in the space. Depends on that wall in my opinion with the oak. May want to get a further plan together and decide on the space as a whole. Let me look back, did you post other rooms nearby that have adjoining visuals to this space?

Ok it’s pretty much on its own!

Seems most room placements with a fireplace and tv viewing is easier to arrange if both are on the same side. Do you use the fireplace?

One thing I can suggest and is fun and helpful for us here is to google search your “cozy, rustic, inviting touch of modern” and post some images that appeal to you. With low ceilings :).

@Alice Thanks for the advice. I'll look for some inspirational photos.

I love the green sofas that Beverly posted above. I would repaint the walls something warmer. The gray is very cold feeling. When you paint, paint the crown molding and baseboards (actually all of the trim) the same wall color to give the appearance of taller ceilings. If chosen wall color is not too dark, paint the ceiling that color, too, so your eye doesn't register the ceiling line as much. I would move the fireplace to another room...the master bedroom might be nice.

Yes, thank you from the Queen of Houzz nags for showing all four sides of your space and a layout with measurements. Readers, take note! My suggestions:

--Lose the fake contact paper wall.

--Lose the electric fireplace.

-- Replace with a small entry table,mirror above to give yourself a bit of an entrance, something like this but smaller round mirror. You can get a live edge table and hairpin table made to size and finish by many Etsy vendors. Put an interesting woven basket below and basket/bowl for keys and mail. Attractive, handmade useful items give a space hominess and individuality. Etsy also has great hat and key hooks for that skinny wall by the door. Put your cool hats on it, but neatly.

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Get a rug like this one from West Elm (check out all their wool rugs)--texture and pattern and natural wool give a cozier feel. Then match paint to the oatmeal color for ceiling and walls so they blend and make ceiling seem higher. Match drapes to wall color. Sofa can be neutral color from whatever rug you get and leather armchairs in an accent color from the rug.

Get a couple comfortable modern chairs to either face windows, or one at either end of the current coffee table.

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--Get a sofa with small chaise for TV watching if that's what you like in a couch.

--Choose some art for the room that you like. I often suggest starting out with graphic affordable prints from society6.com.

Maybe a little nature or abstract landscapes to echo your nice outdoor views and extend the view.

--Not crazy about whatever that big clock object is, but . . . maybe you love it.

--Add some nesting side tables for the chairs--instant warmth and coziness where you can put down a mug, a book or a phone.

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--If you ever see a thrifted chaise no matter what color, grab it, and put in the corner where the big window is with a floor lamp behind it. Throw a handmade throw over it that works with your palette.

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--Get art for your newly painted TV wall.

Love that rug, housegal! Just shows that warm and cool colors can work well together

@melindas1977 Are there any particular paint colors you’d recommend?

@housegal200 Wow, thank you so much for such a detailed response. I really love all of your suggestions! Just a couple of quick questions:

1. Do you have any specific paint color recommendations?

2. Do you think a wood slat wall would look nice behind the TV?

I don't have specific paint suggestions. It's best to wait on that until you choose your new furniture, rug, art. Since ceilings are low, use same paint on walls and ceiling so the walls seem to blend into the ceiling.

Paint your wall first, after your remove fake wood, and see how the wall looks. I'm not a big fan of "add ons" to walls like slats, but I guess it can look good. I'd spend the money on a very wide console cabinet. Do a search on Facebook Marketplace, Craigslist, and thrift shops. Sometimes an interesting midcentury "MCM console/sideboard/buffet" pops up for less money than the slat wall thing. Try out the room planner apps. Some of them are great.

Most important is to choose your furniture, rug (get a big one), art, lighting holistically so all the pieces work together. Create a Houzz Ideabook and one on Pinterest with search term "midcentury rustic" and see what comes up.

I would start by painting all walls in a warm white. I would remove the fireplace as it seems to be in an odd corner behind the front door. Maybe you'd like a style something like below that's inviting and casual.

I think your layout is good. Painting and new furnishings will really change things up. Keep the furniture smaller framed with simple straight arms to give it a contemporary look. Add a comfortable chair for additonal seating. I'd get rid of the draperies for something like roller sun shades or top-down bottom-up shades.

@Emily Thanks so much! I really appreciate the renderings. What type of chair is that? I was planning on ditching the drapes and installing motorized blinds on all the windows (you can see in my photos I already took the drapes down and installed a motorized blind on one of the back wall windows). But then I started second guessing myself. Everyone keeps saying the room will look unfinished without drapes and that I should definitely consider keeping them.

The chair is a swivel wingback chair. I personally like the look of just blinds so it keeps a sleek look. If I did draperies it would be only the front windows , and I still use blinds so I didn't have to fluff the draperies every time I opened them. You have beautful windows and trim so even if you had no window treatments they would not look unfinished.

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@Emily Thanks again, Emily. I appreciate all your help.

You're welcome. Let us know how it turns out!

I would choose a warm white but nothing with too much yellow. Your choice will be informed by upholstery and rug choices which should come first. So. Many. Paint. Options. The lighting in your room will also play a big part in your paint choice. Sample extensively on different walls and assess at different times of day. So excited for you. You will love your 'new room.'

Flushmount lights but not boob lights. I grabbed a few fairly cheap at Lamps Plus and they made a big difference.

Really a lovely space and I wish I had more time to ponder this, nice suggestions above from contributors ❤️ houzzers — another quick look but I would stay away from “modern” design here — unless it’s midcentury with some traditional events, b c low ceilings can feel at bit office-like — a moment —

Just a few ideas 🙂 along the Tudor European Ranch Revival

@JJ Will most definitely be replacing the "boob" lights :)

@Abby HeartsBeauxArts Thank you so much for sharing your thoughts ❤️

You are most welcome ❤️ just have fun (and buy some fabulous potted plants deserving of fairy lights)

Ps apologies no idea why it keeps posting these pics…I cannot work the phone at 4:17 am ❤️)

Your current TV wall has more than enough room to have fireplace/TV side by side. Onlly you can decide if the fireplace is of the quality to be worthy of pride of place. Some electrics are quite lovely. I might look for a more substantial one to balance. My first impression of your TV wall was it's the MCM wall of brick with a hearth but no actual fire box!! I've seen it in a few homes. Glad to hear it will be easy for you to change up.

https://www.livingspaces.com/filtered/departments/furniture/living-room/accent-and-sofa-chairs/made-in-the-usa-p138082-a26~158?sortby=sale_price+asc

Do you live close to a Living Space?. They have tons of lounge chairs, and you can even filter chairs "Made in the USA" which I've never seen offered before. They have 1,200 chairs available, but 199 if you just want the ones make in the USA. So the majority of chairs are imported.

I think we'll see a lot more of "Made in the USA" in the future.

@arcy_gw I’ll be moving the fireplace to a different room. Not sure what I’m going to do with the accent wall after removing the contact paper.

@BeverlyFLADeziner I‘m from Canada. We don’t have Living Spaces here, unfortunately.

Perhaps a softer take on modern than you had in mind, but a few thoughts, anyway. (Imagine a fabulous piece of art on the wall where the clock is.) Given the low ceiling, I would choose the lowest-backed upholstered pieces that you find comfortable. The more space between seating and ceiling, the better.

Here's the basic floor plan, although I changed a few details, like the coffee table:

@simplynatural Thank you so much for sharing your perspective and even including photos! Your point about the low-backed upholstery makes so much sense with our ceiling height. Very helpful. I'll keep your suggestions in mind as I move forward.

I see that the love seat and couch don't match I would have either matching or just the couch and two chairs facing the fireplace but the chairs don't have to face the fireplace they could either be straight face in each other or at an angle

Did anyone suggest removing the "boob" lights? Overhead lighting in a living room, especially one with a low ceiling, is harsh. Replace them with table and floor lamps.

And please no matching loveseat and sofa--that's a trend that died years ago.

Really weird! If love seat is vintage looks ok only if totally different like all wood with cushion seat. Like antique.

Since you’re starting with almost a blank canvas, I’d actually choose the overall design direction before buying individual pieces. It’s surprising how completely different the same room can feel just by changing the lighting, colors, textures and focal point.

I recently transformed the same living room in four completely different ways — it might give you some ideas for which direction you’d like to take yours:
https://youtu.be/R-2ZyyBc6EY