What don't you like about it? I am not an expert but I like what you have. If it looks dirty maybe repaint the white part. I don't know if 16" shelves on either side is going to be large enough to be functional, and IMO would clutter the space. And interfere with the curtain rods. It looks like you have a fairly traditional home, don't put in shiplap unless you really love the look. Its a trend that is on its way out and won't look right with your fireplace unless you redo the whole thing and somehow remove or cover up the brick. The only issue I see with the whole thing is that it is rather flat on the front. If you don't like the decal thing, and it is easily removed, you could take it off and add two small pieces of vertical trim to make the top area look more like your inspiration piece.

J Pru, thank you for your input. I don’t really mind the craftsman style facade but I am definitely not a fan of the decal. I don’t love the brick and I hate the tile hearth, so ideally I’d at least address those. I agree with you regarding shelves - there probably isn’t enough space. They wouldn’t interfere with the curtain rods because they’re only 41” tall but you’re right that they wouldn’t really be functional.
Any suggestions for tile to go over the brick and for the hearth? Or maybe paint the brick white? Still not sure what I’d do with the hearth. Thanks again!

I would just take off the decal and then repaint. No shiplap. Take everything off the mantle and simplify like your inspiration pic with a rectangular planter. You could also hang a piece of art.

Your inspiration photo is nice but if your house is the 1940s-50s colonial I suspect it might be, making changes like those may not be in keeping with the house you have. I think you can get the result you want without that expense. Take off the decal. Scrub the brick and tile within an inch of its life. Get rid of the fireplace screen -- the fireplace isn't usable, is it? Put an arrangement of birch logs or candles in the fireplace. Paint the white surround a glossy, high impact color you love —and declutter. A single large piece of art would make the fireplace the personal showpiece it wants to be!

https://www.thisoldhouse.com/fireplaces/21018070/colorize-your-mantel

Remove the decal and clean the white part, scrub down the brick and try bleaching the grout in between the tile. As mentioned above, ditch the screen and add birch logs. Paint the white part with semi gloss paint. See how that looks. If you still hate it, maybe paint the brick black or white. If you STILL hate it, maybe address the tiles on the hearth, but I will tell you, it is not easy to bust those out and fix - If you do replace them, it will have to be with another type of tile, because if you want to keep the hearth flush you won't be able to use a solid slab piece of marble or granite. Ask me how I know....

Oh, I second the idea to get some beautiful custom made curtains that go all the way up to the ceiling. I think that is a better investment and will make way more of a quality statement than messing around with new tile. The tile isn't what I would pick but honestly, I didn't even notice it until you mentioned it. The curtains you have now look like they came from bed bath and beyond - no offense (I think I have similar ones) but you can do way better.

We might recommend taking the decal off and then taking away some of the decor on the top. Here are a few of our fireplaces that we designed for clients.

Altadena Farmhouse: Phase 2 · More Info

Altadena Modern Farmhouse: Living Room · More Info

San Marino Southern Belle Interior: Living Room · More Info