when the room is full of furniture and life, it may feel very crowded with an accent of wainscotting.

Consider painting it all, walls and wainscotting the same color ,including the trim(s) for a more elegant look, it will feel bigger, no contrast color trims. I'd tape off the room(s) to see what it might look like, and go high on the wall, like 5' with a cap. Wallpaper would be my last thought.

Do that after you've lived there awhile and know what colors and accents you are really in to.

Paint is relatively cheap compared to a commitment to a certain wall paper style and color.

Think about how it will look with furniture in it. Will most of it be covered by furniture? I chose not to do my living room, because not much of it would be seen and it would add visual clutter

agree with what's been said - if it were me, I'd spend that time & money selecting art, rug, lighting furniture etc.

Wainscoting reads more traditional. Grass cloth lends itself to more of a mid century modern style.

Looks like a lovely house, but the dining room paneling looks cheap and not particularly attractive. It will even more out of whack and cheaper with a different wainscoting from the living room next to it. Leave the living room as is and do a spectacular job decorating it.

You clearly go for a nice sophisticated look seeing as you lean towards grasscloth. To up the sophistication of these three spaces, paint the dining room wainscoting and trim a flat, darker color. Paint the hallway wainscoting and hallway wall paint the same color as each other. Consider how the dining room, living room, and hallway colors all look together. I'd start with a great rug in the living room and take all of your colors from there.

You have it in your foyer and dining room. Both different styles (according to your pics). I would not add it to the living room. I think it will lose something if you have too much of it.

With three different wall colors and different wainscotting, I’d be aiming to tie the rooms together visually, so as to create a nice visual flow upon entering your home. Consider painting LR and hall a similar/or same color.

Sometimes simpler is really better.

Another vote for not adding any wall treatment to the living room.

First off, I love your house. It's a beautiful traditional. But your foyer is not shaker style, it's a classic recessed panel wainscoting, and whoever did it did a great job. The dining room is a cottage-y beadboard that doesn't work with that in the foyer. Instead of adding wainscot to your living room, I'd replace the dining room with the same as in the foyer so that the styles match up. As mjmomma said once furniture is in a living room, you probably won't see much of it.

And grasscloth is a great choice in a traditional home above wainscoting, contrary to what was said.