You don't remodel ANYTHING to get your money back. That doesn't mean improvements don't enhance a home when well done. But you make them for you. What's a few years ? five? three?

What's your budget?

Nobody can fully answer without seeing your entire first floor plan. with all dimensions : )

Smaller spaces are a huge challenge. You have two "dead" corner base cabinets -- cabinets that are almost impossible to reach. I see no indication there is a window in the room.

Is that kitchen adjoining that dining room -- and is the sink on the wall between the two?

Could you open up the wall between the two rooms?

Since you have a large dining room window for natural light in the daytime, with a new overhead dining room light that gives off more light when it's dark, you might not need the floor lamps and mirrors to add light to the room.

Perhaps you could move the mirrors, etc., on the dining room wall and change out the cabinet for a much larger china cabinet with both visible and hidden storage so you could move some things from the kitchen to the dining room -- dishes, glasses at least -- and do away with the overhead cabinets on the wall above the sink?

If a serious remodel is within your budget, could you sketch, to scale, a floor plan of the two rooms with windows and doors shown?

I like the wood cabinets -- you could reuse them -- but I don't care for the way they're configured -- as if a "transformer" with outstretched arms and a tiny dark head atop the body.

If you're planning to gut the kitchen, you might even consider reusing the tall wood kitchen cabinets as a dining room cabinet.

I personally can't imagine doing either if I am going to move in a few years - I assume that means 2 or 3? I love cooking in a galley kitchen. I can imagine a family not wanting to buy a house with a galley though as it is hard to share space in. I agree with Jan that you don't remodel anything to get your money back. But I do think you could remodel something so your house doesn't sit on the market longer.

We just purchased this home because we got a great deal in a good neighborhood. These are not recent pictures of the dining room this was the old homeowners pics.
Nothing is in the room at the moment. Just had it painted in a light grey. This home was built in the 80’s and no walls can be taken down on either side. Stair case is on one side and master bath on the other. I’m all about natural light and yes that’s the only window so no it want be taken out.

"We have a large dining room at the end of the space. We can turn the dining room into a new kitchen or update what we have."

Is the 2nd picture the "large dining room at the end of the space"? Is there another Dining Room elsewhere? I.e., is this your only table space?

Sadly, No other dining room. If we take the galley kitchen out it will become a small dining room with a round table.

Live in the house for a while to figure out what you want to do. I also personally love a galley kitchen. Maybe after you are there for a while you might just want to get a counter depth fridge and new countertops and call it a day. The cabinets look quite functional and classic and might just need a good cleaning.

If you're only going to be here a few years, enjoy having less steps to get your meal prepped and do no more than repaint the wall color to suit your taste.

I think the bottom line is, "what is your goal?" Is it to improve it for YOUR use? Or, are you already planning to re-sell it and thinking of future buyers?

If strictly for resale, don't do anything if you're expecting to get your money back, because you won't.

On the other hand, if this is for you and you're not worried about getting your money back, then I would go ahead and gut it.

Something to keep in mind...when we remodeled our Kitchen 11 years ago, we over did for our neighborhood at the time (by quite a bit). We did it for US, not some nebulous future buyer. However, over the years most people have been remodeling and our Kitchen is now inline with everyone else. I'm glad I didn't listen to those telling us not to overdo! I've had the wonderful use of our Kitchen and when we eventually sell in a few years, I don't have to worry that it's far below current standards!