I think the arched area needs to go , the rest below the mantel seems okay to me . Of course I have no idea of your style so maybe pics of the room posted here in a comment would help.

for a long range solution, I would remove it all and reuse some of the brick.

Do the windows show on the exterior? Is it wood burning? How about a photo of the whole room and how the fireplace relates to the whole space?

for me, removing the hearth and sliming down the look, especially if you plan to mount the TV over the firebox.

Is the television staying there? If it were mine, I I would remove the too skinny ”mantle”, or is that actually a shelf?, drywall over everything above it & perhaps to the sides up to the hearth. After having that done I would replace, if you desire one, the mantle with something much chunkier, many sources online in a variety of widths & finishes ( Urbandi, Wayfair, etc etc.)

Paint the brick and do something to simplify the space above the mantle in some fashion. Either remove the brick, drywall over the brick or install wood over the brick.

Here are brick fireplaces that extend across the wall.

Agree with Beverly. The brick is nice and just needs a revamp of paint to modernize it.

Yes, agree with Beverly re painting the brick,I forgot to add that. There are some odd colors in the brick.

Yes! to everything @Design Interior South said. So much cleaner and fresher.

Those niches don’t appear to be windows, just masonry design features.

When I first saw the picture it reminded me of a Jack O'Lantern and now I can't stop seeing it.

Agree with the others, paint will make a tremendous difference.

It is a very interesting fireplace. Is the tv covering another arch in the center? Arches are ”back”, btw- and currently trending big time.

I would leave everything intact, including the brick. I would look to find another place for the tv.

Can we see an exterior shot of those windows?

Design Interior South is spot on. My first impression was of an old castle just in need of suit of armor.

Some inspro

Remove the arches

Either limewash the brick or partially drywall the sides

Add floating shelves + a simpler mantel

If you want a wow upgrade:

Full built-in wall or plaster fireplace

or just simple idea with decor and floating shelves

What's the budget for this project? Are those windows or just a feature element? Do you use the fireplace? Is it gas logs? What size is the actual opening? I have thoughts, just need more info.

Slat Solutions make these pretty green slatted wood panels that would cover the top half of that wall.

These are all great ideas, sorry I don’t know how to reply to each responses. We’ve for sure decided to remove the brick at the top, the arches are not windows, they are like windows, you can turn on a switch and they light up. Once we remove the brick, we may do shiplap or something similar on the top half with floating shelves on the sides of the TV. It is a gas fireplace, we’re going to remove the old gold surround around the fireplace and have the mantle and the fireplace surround be white, Similar to Design Interior South image.

Your ideas sound great. So glad you're changing the fireplace surround. That was far too heavy looking. Since you have electric to those arches, consider putting some type of sconce there. You have an advantage in that your brick is actually nice IMO. If it fits your decor, you don't have to paint it once the top part is removed. Post the finished result. I love a before and after.