Thanks for the photo and the zone designation.

Is the soil sandy and well drained or is there clay there?

Does this shower get used daily in season or are you only around sometimes, such as on weekends?

It looks fairly muddy in these photos, but what will be happy here will depend on how consistantly damp it is, so we need to know answers to the above questions.

Also, at least one photo from farther back that includes as much of this part of the yard (side and back yard?) to we can see what else is there to make a more coherent whole between this and your other request. I am going to add a link that goes to your other post so they can be dealt with together.

Here is a link that might be useful: bed along fence

Someone on this forum once linked an article from fine gardening for me on things to grow in damp shade. I've referenced the article often.

I'm my deepest wet shade I've found that orange (ditch) day Lillie's and obedient plant also do well.

Here is a link that might be useful: Damp shade plants

Ok, here's a pic... sorry about the kids toys, hopefully it still gives you an idea?

We use the shower daily in the summer. 3 kids and that's "bathtime" in the summer!

I would not consider the soil well drained, and it's definitely a bit sandy (although it looks like a mud pit there). We're not too far above the water line... my husband hit water the other day about a foot or so under the grass. It had just rained, though, so I'm sure that contributed to the issue.

Also, we planted some grass seed this weekend. Hoping it will take.

Not sure if that pic is a helpful angle. I can post more if needed.

thrifterindisguise, the fact that the grass hasn't spread to that area naturally indicates that lawn grass might have difficulty thriving in those conditions. I'm not familiar with grasses so I don't know what to recommend, but I live next to a swamp and tall green grass grows in the patches of sunlight even next to a brook so water isn't the main issue but rather that the grass likes sunlight. I live in zone 5b which is similar to yours, and I have a mostly shade yard and I've found that hostas, Carolina Allspice, and hydrangeas do well in shade with a lot of irrigation and ferns, lamiums, and pachysandra also do well in the deeper shade. I would recommend first adding stepping stones then planting around them so that you can avoid stepping in mud when gardening.

Thanks for the added info, Thrifter. DoGooder has given you some good suggestions. Be sure to check on specific varieties of fern you find at the nursery to see if they would do well in wet conditions, since some types like it drier. Ligularia is another plant that will do well in damp shade.
Cranberries make a great groundcover to weave between other plants in damp shade, though their flowers aren't too noticeable. The berries, though not profuse, are beautiful, and won't harm your kids if they pop one in their mouths.
Blueberries will grow in the areas with at least a few hours of sun by the fence, and the more sun, the more berries.
Siberian Iris will grow in quite a bit of shade and are perfectly happy in quite wet sites. The more sun, the more flowers. They will give you a grassy effect after they are done their spring bloom.

Plants you might want to avoid from PixieLou's article:
If your kids may eat stuff in the yard, foxglove is toxic and Smilacina/false Solomon's seal has berries.
Impatients has a blight or disease of some kind that has decimated most plantings of the regular impatients over that last year or two.

You probably also want to avoid beach roses (rugosa roses) since they are large and have fairly wicked thorns and your yard is small, so you want to have room for the kids to play without getting into thorns.

Cranberries like water and sand, but might not like the shade. Jewel weed loves damp and sand, but most consider it a weed.

Moss likes shade and moisture.

http://www.outsidepride.com/seed/ground-cover-seed/irish-moss-groundcover-seed.html

Sensitive Ferns do as well. How much does this area get walked on?

Here is a link that might be useful: Moss Milkshake

I think a hydrangea might look nice in that spot. It will do well in part sun/part shade, likes the moisture, and the right one will fit nicely in that spot. The only downside is it's not too attractive in winter.

Good luck!
Dee

I grow Cranberry in a variety of aspects in my garden, from full sun to mostly shade. Cranberry does fine in quite a lot of shade in my garden and I would expect it would do well in thrifter's site as long as it is wet enough. The plants in this photo from last November are in perhaps 4 hours of sun at most, though much of the year they are in less sun. I also have some that get about an hour less sun than this, but I can't find a photo from previous year, and they were fairly severely eaten last winter by the voles and haven't yet recovered.

How about a moss garden? Loves moist shade, soft on the feet, maybe a stepping stone or two. I have seen it done as a mosaic , really pretty!
Never apologize for the kids toys, that make it look like a home!