For your space, yes you need a bigger rug with all the furniture on the rug. If the rusty red pillows are your accent color, maybe find a neutral rug with that also as an accent. You can keep this layout and add two chairs under the window with a table in between. Or you could move the love seat under the window and add a chair diagonally across as an accent chair. You need some artwork or photos or something above the sofa. Is this room just for reading/ conversation or is there a TV? Do you need any shelving for books or storage or display items? Good luck!

The rug really doesn't look that great with your floor but you could keep it if you move the loveseat in front of the windows; put 1 end table to the left of the loveseat; slide the sofa a little to the left and put the front legs of it on the rug; put the other end table to the left of it turned the other way.

Is this a self contained room or a room you walk through on the other side? I would keep your sofa where it is, move the loveseat to sit in front of the window, so you have an L shaped conversation area. Get a larger rug so the front legs of the sofa are on the rug, the rug sits just in front of the end tables, the loveseat front legs are on the rug, and the rug reaches past your coffee table about the same distance it is now. That leaves you a walkway through the room. Or turn your end tables the other direction and put their front legs on the rug also.

I actually think I’d do the large sofa by the windows. The love seat across from that. And a large rug.