I think an accent of wallpaper to separate the rooms is a good idea.

However, I would like to see another photo..the rug is off center; the print is hung too high; the chairs should be on the rug…jury is out on the little table and lamp.

Could you post another photo(s) of the entire space?

Love the idea of wall paper. Browse through some wallpaper books to get a feel for what you like. I think a bold print would look nice. It isn't a large wall so would not cost an arm and a leg to paper. Hope it doesn't get too confusing...so much to choose from. Good luck.

Hello everybody, thanks a lot for the feedback. I centered the rug and pulled the print down a few inches. I could not put the chairs entirely on the rug because it would pull the carpet from the sofa on the opposite side. please see photos. SO what do you think would be a good color palette for the wallpaper? I can't decide.

I would invest the time, money and energy into looking for a more substantial piece of art or some other decorative piece. The wall looks bland right now because the art is too small and isn't hung at the right height. Your table and lamp also blend with the wall and don't add much interest to the spot.

Your rug is beautiful and has a strong pattern and I wouldn't add a pattern to that wall that competes with it.

The space is perfect for other things besides art. I love framing and hanging old maps of places that are special to our family. You could put up an antique sign. If you live on the coast you could use a large antiqued metal compass rose. Think of things that are meaningful to your family and find something decorative and fun that will work in the space.

Do you have an example of a wallpaper that you have in mind?

I have been thinking about that wall. Instead of papering it, why not paint the columns black? The fireplace is black…I think the tie in would be great.

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Then, could the leather chairs flank the fireplace?

If so, the black mirror in the other room could be hung vertically between the black posts.

I keep thinking of mamadadapaige's kitchen with the zebra stripe wallpaper.

http://ths.gardenweb.com/discussions/2559013/guess-whos-kitchen-was-featured-on-the-email-blast-from-houzz?n=5

Not the right colorways for your rug, but I'm sure that somewhere there is a tone-on-tone animal print that would look fab in your space.

I also like the idea of painting the columns black (which is probably enough interest, without wallpaper too).

thanks for the suggestions. Painting the two columns would be a good except that there are four other columns in that area, and using dark olive (which is referred to as black here) won't work. I think I will go ahead with the suggestion for a large painting or some piece of art as rendered by ilikefriday. Thanks a lot again. Really appreciate all the great tips.

I wouldn't compete with the rug too much...grasscloth wallpaper will add texture!!

I think wall is too small to have paper that separates and also does not compete w/rug. I like art as posted by Ilikefriday, modern or contemporary to contrast with trad rug.