Start with better lighting so we can actually see what is in the room.

Let me help you present this Dilemma better: Turn all the lights on then photograph every side of the space. What's on the wall opposite the wall where dining furniture is? We need closeup of the fireplace and blond console. Include photos of kitchen if it opens to the space. We need several more well-lit photos to see what your "givens" are.

Then answer some questions: Is this a family house with kids, retirement home, or are you solo occupant? What kind of budget are you talking about? Do you entertain much? I see a TV sticking out in the space. Is TV watching a primary activity in the room? I suggest hiring a designer so you keep furnishings that still work and replace replace what doesn't.

Off the top of my head, I suggest removing all the "faux"stuff: ceiling beams and flooring. Upgrade to real wood flooring, at least around the sunken living where you could get away with some light, nubby real wool carpeting. Real wood floors will make that fireplace and some of your wood pieces look better instantly. Plan to replace the French provincial farmhouse dining set with a thrifted more modern table and dining chairs. They don't have to match! Check out Chairish and 1st Dibs then offer half or two-thirds the price.

For whatever reason, and despite the outdoor arches, the room made me think of these MCM spaces though yours is well past that period. Still West Elm doesn't think so.

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I would go with with this layout and furniture

What is your budget for changes at this time? Are you thinking of shopping at Ikea, Target, Macy's or upwards?

What pieces do you love that you won't be getting rid of? That will give you a basis of a few pieces that you want to work with.

Exclude any pieces that will likely be used used in other rooms, e.g. I can't see the futon or the cedar chest looking good in this room. Exclude any finishings that you know you will be replacing e.g. maybe the flooring and the fake beams as suggested above.

What's left is a much smaller, less confusing palette of wood finishes and styles to start with. Maybe one or two can be refinished, further reducing the number.

First of all, I agree these are pretty crappy pictures! I'll work on that - perhaps on a not so sunny day. Not sure where to shop for furniture and decor. Definitely not Target. Although the couches are Ikea, that was mostly because it was an easy button. The coffee table is super functional so I want to keep that. Same for sideboard. I use the cedar chest for the TV stand (not pictured). That is a keeper but it can move to another room. I was thinking of getting rid of the futon and moving the couch to its place. That end of the "pit" is curved, which makes it hard to fit anything that makes sense.

It's just me with occasional weekend guests and very little entertaining otherwise - which I'd imagine is apparent bc this is pretty embarrassing to look at!

Biggest issue? The step down. Fix that first so that when you ask me over for dinner, I don't fall down, break my leg and then have to sue you to pay my medical bill.

Structural Solutions (Eliminate the Step)

Do you have a space where you can park furniture you're not sure you want to keep? If you remove everything you're not 100% sure you want in your den/LR, and slowly experiment with bringing back one or two pieces at a time, that may help you sort the keepers from the pieces you can release to good homes elsewhere.

I would do some research on raising up the sunken area. We've had a few people on these forums do similar projects and they were all very pleased with the results.

How can anyone even have a clue when we cannot see the room . Post much better pics and maybe we can help.

Take away all the throws and the futon then see what is needed. To have those floors all one level will cost a ton to do but for sure would make this whole area feel and look different .

Food for thought: Raising the floor would have the effect of lowering the ceiling.

For many of us this is how the start of our journey begins. You need stuff to fill your first spaces. Some is given to you, some is found at some bargain price and a few things are things we fell in love with and bought without any thought to where we were headed.

Some people get their first home and it is a a period home of some sort and they begin getting furniture that fits their home. Often they move from that 1900 Tudor and trade charm for newer, working plumbing, electrical and insulation, but they have gathered a house full of Queen Anne antique furniture. I started in a small California Bungalow and the hand me downs were all mid century modern. I don't know if I love MCM because it is what I have always had or if I have always had MCM because it is what I love. . . But it is now all the rage.

First thing you need to do is really think about what styles you love and start replacing pieces with high quality pieces that you won't replace again or at least not for many many years.

The second thing I would advise you to think about is your color palette. Trends change every few years, but if you base your palette on the colors you love you don't have to replace everything every 10 years.

I am looking at your space and seeing all the jewel toned accessories and wondering if these are the colors that make your heart sing.

It is hard to find good examples of jewel tones in homes without the designer going overboard. This may be a bit much even if you truly love jewel tones.

But there are ways to tastefully add jewel tones and pick a color palette that works for you and the colors that you love.

I like the millerpaint color tours for inspiration Here are links to two that I love,

https://www.millerpaint.com/color-tour-a-saul-zaik-designed-home-in-portlands-southwest-hills/

https://www.millerpaint.com/color-tour-portland-modern-slender-house/

Once you figure out what style you love and the colors that you love and how you want to incorporate those colors in your home (accents, wall color, furniture . . . ) you can build your plan and replace one item at a time and live with the "not my favorite" pieces till you find something you really love and will continue to love for a long long time. Spend once on pieces you love that are high quality and fit your plan or spend over and over and over again and take your chances on how things will come together.

Decorating goes on for decades. It is a journey. Enjoy the process, enjoy the results as you successfully find your way.

So Jennifer posted a myraid of pics are there any you like ? We need some actual info from you . I went to see idea books none so what do you like in a style . Look at the ones posted and tell us some idea so we can help. I do agree often we end up with cast offs form other sources and honetly free is never free it always costs something. If you do not want it and need it just say no thanks. IMO cedar chests belong in a bedroom nit as aTV stand so maybe start there . I hate futons always sogive it to somebody who loves them , ( maybe ) Jennifer offered a ton of choices look there to see what cathches your eye

Showing the room with sunken living room and how it would look if brought up to the same level at front and back

Luckily you don't have to do anything to the windows and door wall to raise the floor. And the beams are faux, easy to remove. When you post more pics from every side looking back into the space, include after dark shoots.from each side with lighting. New lighting design with smaller recessed LEDs can be used. Which direction is South and what climate is your location in.

I wouldn't worry about the sunken living room at this point. Maybe someday down the road, but your biggest bang for the buck is to figure out a style. Even if the floor was even you would still have mish mosh everywhere and no connecting theme.

Neat AI to see the room without the sunken and interesting how everyone seems to want to fill it in! Lol. That was never my question! It does look cool filled in but I wouldn't want to do that; it is the architectural bones of the house and I revel in the 70s whimsy. I'm actually thinking a funky deep shag would really honor the room. As for color, if I take away all the 'top layer', everything is neutral - grays and browns to match the fireplace. I actually change the accents seasonally - summer, Halloween, holidays, winter.

I like that you lean in to the strong colour accents, but I suggest you stick to one colour at a time. Especially since other aspects are mixed (e.g. wood tones, styles), a steady repeat of one colour will look very good.

When we downsized, I made a list of keep/maybe/get rid of. Keepers will drive a lot of decisions and help you edit. Then pour over inspiration rooms that can accommodate your pieces style wise.

If you’d like suggestions, provide pictures of what furniture you want to use, advise your needs (seating/dining/etc) and your preferred style and colors. Provide the floor plan, measurements, structural components.

@Colette Grail

You had quite a few comments about levelling the floor so I just wanted to show it. I think it can be a nice room without going through that expense. Your idea of a deep shag might be ok for an area rug but I wouldn't suggest it for the entire sunken area. In my mockup at the top, I showed your room by just replacing the accents.

You don't need a cloudy day to photograph the room better. Just turn on all the lights. We absolutely need photo of fireplace in good light because stone color and texture is a "given" that dictates style and color choices.

My suggestions at least so far.

--Put your TV on the level above the sunken sectionwhere you have those two art works and futon. Invest in a really nice leather TV watching recliner on a swivel in a great color. Put one of your side tables next to it. Put a low bookcase below TV so this elevated area is also a book reading space. Add a floor lamp.

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--Get a neutral colored sofa, which harmonizes with the lightest, warmest color from the fireplace stone--maybe a warm gold? Add pillows in same color as your TV chair.

--Get two armchairs for company. Coordinate color choice with fireplace and whatever sofa you choose. Arrange chairs around current coffee table you're keeping. Match chair legs to coffee table.

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--Be on the lookout for a dining table with an MCM vibe--check Facebook Marketplace, Craigslist, thriftshop. Simple lines. Then look at West Elm dining chairs and see if you can find more affordable versions on Wayfair. Ditto more modern pendant over the table.

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--Replace vinyl flooring with warm wood flooring on upper levels when budget allows. Wood should harmonize with fireplace stone and kitchen cabinets we can't see. Then get shag type rug to cover sunken living room.

No need to do this all at once. Banish the word "funky" from your decorating vocabulary and go for "curated boho" where major good pieces you're keeping and new pieces you're buying have simple lines, comfort, texture. The boho can be pillows, art, throw, etc.