a two sided fireplace? The so called dining room is to the front of the home? with a large window? sorry, I don't understand the arrangement.

Yes, it's 2-sided. The front of the house has a small foyer, connecting to the hallway which leads to this room first, then the other side is a family room with open concept kitchen

I see a room with a fireplace at one end and doorway leading into a short hall at the other end, and two small windows. It doesn't appear to be at the front of the house to me, but I could be wrong. I don't see any reason why you couldn't use this room as a formal living room, or something else. Sorry I can't be any help, I'm not very good with blank slates.

What do you need? First and foremost is utility. Could be a music room, office, entertaining space, game room, whatever you need. Labels are unimportant--it's your house and you are free to use any space however it works for you.

^ agree - I was at first thinking media room, but that doesn't work since it's open concept

It could be a living room, how would u set it up? Since there are 2 openings leading to the family room and on the other side connects to the hallway

.. a sofa set may block the way.

Unless I put a love sofa with 2 chairs?

I would be tempted to float 4 comfy armchairs around a center coffee table - if you google this arrangement you will see lots of ways to do it, style wise

https://theindigolattice.wordpress.com/2016/07/27/15-circular-conversation-seating-areas-4-chairs-around-a-coffee-table/

Decide on your needs first, then post a floor plan. It's difficult to give you a layout without knowing the dimensions and adjacencies.

You could try a music room, small family room, home office, game room, etc. It really will depend on what you need. Here are just a few images from our designs for some ideas:

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I suggest some comfy swivel chairs arranged around a glass coffee table. Two nice floor lamps, a cool area rug under the chair arrangement and possibly a chaise lounge for dramatic effect placed on the diagonal. Possibly a bar cart and some big exotic plants.

Treat the space as one giant room with similar colors but create a conversation area in one room and maybe a tv area in the other.

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