^^^^You definitely need to check with your local zoning code - however, most likely those windows will need to be tempered glass. Less than 18" height off floor + greater than nine SF of glass panel appears to consistently require tempered glass (unless the height of the glass panel is less than 36" off of floor). There are more rules for different situations - however, I would bet that if you raise the floor, those windows will need to be changed.

Personally, I would level just for safety reasons i hate those step downs, why did anyone ever think it was a good idea? . Several neighbors have had theirs levelled after a few mishaps. My MCM home has just 8’ ceilings & all the windows & doors are just a few inches from the floor, if that, & there’s lots of them. Doesn’t bother me even though I’m 5’ 12”+ tall, lol.

My 8' long front window sits at about 9" off the floor. My ceilings are vaulted but my sidewall starts at 8' height. It doesn't feel too low to me at all. The lower windows feel more expansive.

While you're re-doing the floor, I would consider removing the fireplace unless you use it a lot and love it. It would give you much more room and let you create a nice TV area. My sister got rid of both her fireplaces and her rooms look so much better.

If your guest living room really has a 20-foot ceiling, a room with an 8-foot ceiling will certainly feel less spacious. I grew up in a house with 14-foot, 12-foot, and 10-foot ceilings, and I've always noticed 8-foot ceilings (which is what I've mostly lived with since). I'm never not aware of them. But I really couldn't call it cramped. Just less spacious.

Eight feet is pretty standard for post-war ceilings in the US, if one excludes McMansions. I doubt guests would notice. Would you notice? If my experience is a guide, yes, you would. But on the other hand, you might enjoy not falling into your living room.

Aesthetically, I like the step-down you have, but for safety reasons I, too, say raise it all to one level.

Thank you all! Very much appreciate the thoughtful comments. Also glad to see that we have a unanimous consensus on leveling the floors!

Your plan should first consider the age and quality of your windows, the kitchen / getting rid of pony wall created by a peninsula, and getting rid of ANY raised hearth in the adjoining room.

Yes, one level is better, but this is LOOK before you leap.

We aren't even seeing the entire kitchen. let alone a floor plan of the entire living floor,

I would bet there are other issues with raising the floor., as in the hearth one poster mentioned eliminating....It's always a great idea to have everything level but fixing after the fact--not that simple once you start looking into the reality.

I ahppen to love 8' ceilings makes life so simple for lighting , painting so no big deal ther e. Yo will however have some other issues you have not thought about maybe. The windows will all need to be thought out for how they will look , HVAC all will need work . But yes I would do the level everywhere for sure. The FP will not pass code as it is you might decide to go electric instaed You will need an architect to make sure all things are dealt with to code for sure.. Hopefully when this is done that TV cn go somehwere else . It is a huge job to do this so be prepared for a huge mess but for sure I think worth it if done right it will feel so much larger