A gray area rug doesn't seem appropriate based on the other items you have already selected.

swap the rugs for a change.

I would place the leather recliner unit facing the fireplace/TV and put the green sofa along the stairway. The drapery panels would look more interesting with ring clips. (looks like they are short enough to make the clip rings work). Sometimes it's just the little things that make you feel like you've made a change.

Thank you both for your recommendations! I failed to mention that I will buy a couch to replace the Green couch and happy to switch out the curtains too. So thinking of getting a grey couch to match the grey rug from the bedroom, and then swap out the curtain for white sheet ones or grey...if it won't be too much grey

IMO no 2 sofas that do not match at all. Now if the brown stays then 2 chairs that work with that sofa . I see no actual way to use gray with that sofa other than the rug . How do you watch TV in that space ? Sorry brown sofa bit ugly duckling so now turn it to watch TV and get 2 chairs to replace the green sofa , choose a color from the rug for the chairs and forget the gray theme

I would get two chairs over a new sofa for this space. No curtains, no need. just shrinking the wall. can you put the love seat on the window wall, and the tv on the stairwell wall?

I'm not quite sure why you want to add gray. You've got the brown couch, brown wood railing and I'm not sure adding gray is the answer. I like the rug you have now. The drapes are not working the way they are hung on the wall-are they needed there?

I’m with Kcooz07 on all accounts :). If you need another couch (?) maybe go a light brown but not a gray. The green couch can work especially with the current rug if you added a green over to the brown recliners in pillows or a throw?

Maybe even green in new drapes, if you need drapes there? Pull from the rug you have like you did with the green sofa.

I'm all for shopping in your own house, but what you are suggesting doesn't seem like it will improve the look of the room.

Your current rug adds some much needed character to the space. If it feels too bright to you, flip it over and use it on the back side. It will tone things down slightly.

The green sofa is a bit odd in here. You can tone it down as well with throws and pillows. If you are getting a new sofa, I'd rather see not see grey in here. Slate maybe.

These window treatments are doing no favors. Can you take them down and post a pic?

How do you watch TV with it that high and none of the seating facing it? Is it on an arm that pulls down from the mantle?

The brown leather seating looks like man cave or first class airplane seating. It doesn't feel inviting at all. Can that be used elsewhere in your home, like a basement? Or do they need to stay here?

I think the green couch and the current rug are the two best elements in your room. Gray is not going to enhance anything there. If the green must go, then maybe brown chairs like RL Relocation shows would go nicely with your brown sofa. I do agree about turning that sofa toward the tv...the back looks more attractive than the cupholders. If you need a sofa so someone can lie down to watch TV maybe a recliner that doesn't look like a recliner could work, in a fabric that goes nicely with the brown?

I am grateful for the great response and ideas here. Thank you! Let me start with the brown recliner. Its a $4000 recliner we bought for our loft- comfy and high quality during COVID. But my hubby and I underestimated how much we loved cuddling, so when we gave away our old family couches we moved it to this family room. Its too pricey to give away :(. I decorated the family room before our kitchen remodel to the gold, grey/white look it has now. There was no countertop and all the terracotta floor was just everywhere. I tried to decorate with a Bohemian theme to match the terracotta. Now with the new modern looking kitchen I am over the theme. I don't like brown much but stuck with that recliner. Our basement no space for it. My kids watched tv a lot there from the green couch and would cuddle on the edge. We don't watch TV much there. We watch in our loft or living room. But I am considering putting the TV on the stairwell wall as you suggested. I don't want to have the couch in the walkway :(. I accept the feedback about the gray scheme and will forget about it. I used an AI app and it suggested this gray combos ha!