Before you buy anything, reverse the position of the sofa and the chairs, and use a couple of the pillows from the sofa to put against the backs of the chairs. Put a small table between the chair. If that arrangement of furniture feels more inviting to you walking in the door, think if it would look even more inviting with softer, bigger chairs. Or if the back of the sofa now needs a console table

if you think the sofa looks better staying against the wall, new window treatments would be nice, plus a round coffee table, and maybe some upholstered compact chairs to face the sofa

for winow treatments, if you dont want to change your paintings, I suggest long blue drapes of the same color for a fun eclectic look, but leave the gold valance over the desk

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I adore your living room. If by formal, you mean it doesn’t need to be comfy, then the chairs are fine. Maybe just pull the sofa a bit away from the wall.

The blue art stands out as too modern. If those pieces need to stay, consider giving them antique frames and add more of that blue in the room like in chair pillows.

You have a lot of pretty things. I would start with getting rid of the two corner vases and the shelving unit under the clock, and getting a new, larger rug. You should have at least the two front legs of the couch and chairs on it. I would also look at replacing the two end tables with more substantial pieces of furniture, without the long "legs". They are too small to visually support the art above them and you have too many "leggy" pieces in the room already. I think some blue and white porcelain pieces, to pick up the art color, would look great in this room.

Your room has beautiful features - the crown molding and detailed opening to the dining room are elegant and the lovely windows fill it with light. The wood chairs and desk are exquisite. I would replace the sofa (it looks dated and a rather dreary color) and the window treatment first. The new sofa does not have the be fancy. Let your wood pieces be the stars. The colors of the sofa and window coverings clash with the beautiful rug. I agree a bigger rug would be nice - perhaps in a neutral with the current rug layered on top. Bring the blue vases out of the corners and dispose of what is in them. They might work on the new coffee table. I can’t tell what is in the corner by the desk. A cactus? I will move that somewhere else so it did not detract from the desk. Tall, interesting lamps on the new end tables would be nice. I agree with the advise above to frame the lovely picture to make them more of a focal point. Can we see your dining room? I’ll been there are wonderful things there, too!

I agree that the blue wall art is not only too modern, but also there doesn't seem to be anything else in the room that color (try to achieve a unified/cohesive look). In my opinion, chairs are dining room chairs - not comfortable enough for a living room. Please get upholstered chairs. Rug (at the very least) needs to be under the front legs of each seated piece. You have light orange window valances. Where else (besides the flowers) do you have that color? What is your focal point? Focal point can be a window view, a piece of wall art, or a fireplace. If the people sitting can't reach the coffee table, one side table at each seating end is needed. One option (if you have more guests than chairs) is get a large round ottoman (to replace the coffee table) so people can sit down.

Also, remove the round pillows from the chairs. Let their craved backs be seen easily.

May we see a close-up of the rug?

A few comments:

• The sofa should be moved about 6" away from the wall/window
• The coffee table should be moved closer to the sofa so it can be reached.
• The two wood chairs could benefit from an accent table placed between them
• In general, if you only want valances on the windows, they should be fabricated in a taller version to accentuate the height of the room.

Here are a variety of rugs selected to coordinate with your furnishings. You might want to consider changing the window covering to faux peach silk drapery panels for a completely different appearance in the room.

You asked for candid advice and it is great everyone is giving it to you but I came back to say if you like your blue artworks — which look Asian on my tiny screen, not modern — do not get easily talked out of them. Your room can have eclectic charm with those or any other pieces you enjoY.

Thank you all so very very much for the wonderful comments and ideas. I wanted to show the dining room which is off the living room as well as a closer view of the living room rug. We have a lot of wood furniture which I think prevents any modern looking furniture. Thank you

If you love the rug you have, you can layer it over a larger plain one, (maybe Berber).

Candid! The first thing I saw in both rooms were the window treatments. The living room valances, although formal in design, are a dated look even for kitchens. The dining room drapes and swag should be framing the stage in a theater; they're just too heavy and dark. The red art in the dining room and the blue art in the living room are "off" elements in contrast to you furniture. The red ones might work in your kitchen, and the blue could theme another space. Dried floral arrangements and sticks as decor faded a long time ago. The living room rug should be as large as the one in the dining room. What to do...

Here's a favorite house of mine and you have the furniture to pull off a similar look if you just simplify and get a larger rug and some side tables and a coffee table that are in scale with your other pieces. Click through the link with the photo to see other rooms in this lovely home. Brighten up your space by painting both rooms as below (believed to be Navajo White walls and White Dove Trim.) Consider wainscot for the dining room and a new chandelier. Updated window treatments that match in both rooms, larger rugs and less clutter would improve things. If you do paint, then removing all the tchotkes will happen anyway. Pack them up and only put them back judiciously.

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All wonderful comments- I so very much appreciate each comment. What do you recommend re window coverings for both dining room and living room? Based on our furniture- what type of coffee and end table would you recommend?

Shop for an antique coffee table. If you're keeping your sofa with the high arms, you'll want to find tall tables so they arrive 1" above or below the arms. Add lamps to reach the height on the chart. With a large enough coffee table pulled 12-18" from the seating, you may not need end tables and could opt for a pair of pretty floor lamps flanking the sofa. However, I also would consider moving the sofa so it floats in the center of the room with its back to the dining room and you wouldn't need end tables or lamps in that case.