Anything besides lining up on wall. Float In Room more.

It looks like a pediatrician's waiting room. If that's the look you're going for, you've nailed it.

I think the chaise part would be nice near the window with a nice table, lamp and throw. Put a piece along the railing and the other across from it if possible. Maybe a rug and coffee table between them?

Start sliding the pieces around and have fun!
https://www.houzz.com/photos/2013-work-transitional-living-room-new-york-phvw-vp~7959092

Thank you all for the wonderful advice. I have made few changes hope it works.since we are on a tight budget I made changes with what ever I had at home.

I would turn chaise to face into room other than that looks good.

Looks like the piece on the far right is sort of behind the one in the center. I would pull the arrangement apart enough to fix that. Looks like you will need a bigger rug to group around. Could try putting your existing rug on top of a larger sisal or jute one.

You are getting there! This photo shows a rug on top of another rug:

I noticed that with the overlapping, too, and it sure seems like there is room to pull them apart a bit.

Is there room to center the couch with the middle window?

Yes Abby there is room and I fixed it. Made changes. How it looks now.

Thank you! Love it centered. Hmmm......what about the open chaise in front of the open railing and the love seat in front of the wall instead? Seems like the love seat would have more room if it switched sides, too, so the two pieces still do not overlap.

Abby thank you for the quick response I made this change rather then moving the loveseat let me know your views..

I realize the chaise that direction faces the window and the couch, but for some reason, it still feels/seems backward. Can you put the back on the window wall and angle it so the feet end up somewhere on the rug? This may mean the side table on the side moves, but that will still work.

Thank you once again Abby I made some changes. Moved the rug since its small. When I have a budget I will buy bigger one. Let me know how u feel now

This change made by my hubby

Try one more pull on the chaise.......is there room to put the back on the wall and have the long part striaght out in to the room, facing the top of the stairway? Slide the side table over to put beside it.

Let me know your views Abby. Thanks for quick response.

I am not feeling the U shape in this room. Thought if you switched the chaise direction so it did not match and line up with the rest, it might help change that feel. Thought if it stuck out with just the back on the wall might be worth a shot???

It looks awkward any way you put it. I'd put it back together as a sectional and face it either toward the stairway or the windows, floating away from the wall.

Try this please: Pull the chaise WAY back to almost where the rug is piled up. Place it angled at 45 degrees.

Room needs a real coffee table. Right now there is no variety and too much upholstery.

I realize I'm late to this discussion, but can you try it like the "Laguna Beach 2" picture posted above by pcmom1? The sofa on the left, the armless 2-seater piece with its back to the window, and the chaise piece along the stair rail. It's the same orientation that the pieces would go together if they were reassembled as a sectional, but pulled apart.