Unless there is a major sun/heat issue i prefer to leave these types of windows bare. If they do need covering i generally recommend tinting or a plantation shutter. As far as decor for the wall definitely pull the tchotchke stuff down. Nothing is needed there. Art becomes trickier because it is generally too low below the windows to hang anything. I have on occasion taken moulding up to the window or found linear art to hang below each window.

I found this which is almost exactly what you have and you can see they just shuttered the windows and left the rest blank

Other options

One thing is certain your chandelier is too small for the space. Upgrading it will make a tremendous difference because it will help fill the space and make everything else there look more proportioned.

I'd put a tree in the corner and be done. Your curtains look a bit homemade--- they don't have enough folds to make the folds look intentional, but they aren't flat, either. The decor on the window sills is small, emphasizing the smallness of the windows.

One of my neighbor’s has similar. She has applied a film over hers because it looks into a very close neighboring house, allows light in. But I like DIS’s suggestions also. Whatever you do, I wouldn’t draw attention to it. And yes, your chandelier is too small & flimsy looking, love the DIS suggested ones in pics # 2 & 4.

Is it an option to replace the two small windows with one large window?

It would cost me more so would skip it!!

If you want to add a little character, you could hang stain glass windows like this

@Design Interior South's middle photo is the way to go because it diverts the eye from the problem windows and shows how elegant that space can be.

--Get window film for those windows in a lovely pattern. Here's a selection on Etsy:

https://www.etsy.com/listing/1013698401/3d-premium-window-privacy-film-static?ls=s&ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=window+film&ref=sr_gallery-1-8&pro=1&sts=1&content_source=14092d0b-e925-4e66-9a76-085d0b8b339d%253ALTe64bc6eed1fc46a18d618f33e80a3bd18de9a480&organic_search_click=1&logging_key=14092d0b-e925-4e66-9a76-085d0b8b339d%3ALTe64bc6eed1fc46a18d618f33e80a3bd18de9a480

--Get a pair of horizontal art works just as Design Interior South shows--wider than the windows.

----Plan to change out your pendant for a wider, more elegant one. Hang yours properly. It's tilted right now.

--Get a light rug to make the room less heavy looking since your dining set and kitchen cabinets are so dark. The rug should have a low pile and be large enough for the chairs to fit on it and be pushed back entirely on the rug.

--Get attractive curtains for the slider.

----Trash cans do not belong in dining rooms (or out in the open if at all possible). Get one that fits under the sink. Rev-a-Shelf has an easy to install pull-out to hide away trash cans. You can order them at Amazon or Home Depot.

https://www.homedepot.com/pep/Rev-A-Shelf-White-Single-35-Qt-Pullout-Trash-Can-for-Kitchen-Cabinet-RV-12PB/311653192?g_store=&source=shoppingads&locale=en-US&fp=ggl&pla&mtc=SHOPPING-BF-CDP-GGL-D29K-029_025_STOCK_CABINETS-NA-NA-NA-PMAX-NA-NA-NA-NA-NBR-NA-NA-NA-FY24_JControl24&cm_mmc=SHOPPING-BF-CDP-GGL-D29K-029_025_STOCK_CABINETS-NA-NA-NA-PMAX-NA-NA-NA-NA-NBR-NA-NA-NA-FY24_JControl24-20044839317--&gclsrc=aw.ds&gad_source=1&gad_campaignid=20040132954&gbraid=0AAAAADq61UfPp3kJGBvXCREEo0yXDYU3t&gclid=CjwKCAjw0o3SBhBVEiwAh28-jdIUaSYNcC1GjWtQn3sAKFsc5PNtMyH-W_6ievslRuDHxovnbHAUYxoC_nsQAvD_BwE

Same question asked on Sunday

Two posts, same dilemma, different furniture

????

https://www.houzz.com/discussions/6570959/help-to-decorate-this-wall-and-space-with-this-two-window

Yes .. unfortunate me and my friend has a same issue