Our house had a bathroom in a space like that when we bought it. It was (a) not to code, and (b) not useful for my tall husband. We lived with it for 2 years and then demolished everything (not just down to studs - it was re-framed in a totally different configuration that allowed for actual habitable space). You really need more than 3' of width to accommodate the toilet and sink plus a pathway to the shower. The only other option I can think of would be to bump the wall into the bedroom by 2-3' to achieve that width. Or add a dormer to raise the ceiling. I usually advocate for creative solutions, but I don't think I'd spend time or $ to make a bathroom work in that space as it is.

Yes Helen that is the goal I am going for just a separate comfy living space that I can relax in that isn’t always in the eye of people who walk into my house. On our first floor we do have a separate office space for my husband as he works from home every day but on the occasion I do work from home it would be nice to work somewhere that isn’t my kitchen island or my dining table but since I don’t do it often I don’t need a dedicated office of my own, just a small desk in this space would work fine. Our main floor has: Living Room/Dining Combo Kitchen Office Bathroom Guest room (the guest room has a pullout couch in it with a tv). We entertain a lot during the holidays so we didn’t want this to strictly be a guest room so we could use it for extra entertaining space. I also have young nieces and nephews so it doubles as a guest room when they sleep over We also have a basement that is half workroom/laundry and the other side is finished which I have yet to do anything with besides storage. I don’t really want this space to be another guest room - I like the separation when guests stay over since there is another bathroom on the first floor and I have a room dedicated for guests already. I do like your idea of a coffee maker/mini fridge. Perhaps I could add a small bistro table with two chairs...

@decoenthusiaste Thanks so much for your input, I am leaning on agreeing with you at this point as I really don't want the room to appear any smaller than it is. @Cheryl Smith You are correct, the entry door is opposite the knee-wall door, but that run of wall before the dormer is not long enough for the bed, night stands and to still have access to the closet. After a lot of thought, the bed fits best and makes the most sense against the far wall with the window. @njmomma Thanks so much for the pictures, I had never thought about a blue door previously, but I kind of really like it!

Then if that winow counts I would add a pocket door to the bathroom in suzanne’s plan above and do that one, if it were me. You can leave the pocket door open to let more light into the bedroom when you don’t need the privacy of the bathroom. One thing you might also consider is swapping the toilet and shower to get the toilet further from the bed.