Start with paint.
I’d probably go with white.
Then I’d possibly wrap the beams in faux wood. As well as a matching mantle.
I’d remove the curtains
New lighting
Rug
And pull the sofa closer to the FP.

I really like the color palette of this room:

https://stylebyemilyhenderson.com/blog/how-to-paint-over-dark-walls

I see original mid-century elements in your room (love those panels on the landing!), so would go in a direction influenced by that. It’s too bad someone painted over the fireplace, I’ll bet the natural stones had a nice color and texture that could’ve been the basis of a great new color/style scheme with a more natural/organic feel.

I’m not sure your budget, but look at West Elm, Crate and Barrel, CB2, World Market, etc for dining tables, coffee table, rugs, curtains, modern fireplace screen, and other items. And if you are wanting to go in a mid-century direction, do searches for lots of inspiration: ‘MCM living and dining room’ and other terms. Start saving ideas and narrow down looks you like.

I’d angle the recliner a bit so that all the furniture isn’t lined up, and I’d move the cute kid’s table over to where the quilt rack is (relocate that). That’ll give you more of a walking area.

Would it be possible to move the TV to the right, so that it’s all on the wall and not half wall/half stone?

It’s going to be a great room! Again, look through inspiration pictures and I think it’ll give you some helpful ideas.

You could have one accent wall (far dining room wall), but I’d go with a deeper color, like this:

(Source: https://www.apartmenttherapy.com/get-the-look-mid-century-global-eclecticism-in-canada-235742)

And you can certainly add in other styles, I’m not suggesting an MCM theme room — just using it as a base or starting point. Make it your own by finding things you love looking at. :)

I love your colors, and would not do anything with them. First thing, I would do is get a nice area rug in there, with the colors of your walls to tie things together. Use a few accessories in the color of the walls, and maybe a pillow or two. Jinx has some really good ideas in her post also.

Agree w the white paint! Once you do that, it might really open things up. have you about about swapping the dining and living rooms? if you consider removing the built in cabinets down fhe far end, rhen you could put in an entertainment system there. it might help w flow. just a thought.

So, looks like your color palette with the keepers being the furniture is a neutral grey. Then you have the warm toned floor, which kind of throws if off. I think you need a wall color that would blend the two better. The white as suggested would help to blend.