I understand the interest in cheery and fun but I also think beyond cabinet colour or wall colour there isn’t much to do in a utilitarian space. Our mudroom is also laundry room. We will have one wall with sink, washer, dryer. Extra fridge. Then the other wall will be cabinetry for coats and bags. We will be using the ikea pax system. I’m not settled on door colour yet. On the wall, where a window could go but I don’t want one, there will be hooks and trays for wet boots. My life with three kids has taught me that boot trays are necessary!

I would need to see a better close up of the rug that is staying, but to give you an idea of updates that would help. Paint in the lighter blue color, or the ivory, cabinets, walls and ceiling. You can leave the center ones darker, and if that blue matches the one in the rug, then that works. For the backs of the cabinets, put a nice ivory/light blue damask wallpaper that matches the cabinet paint color and ivory in the room and rugs. Replace the mirror with one like pictured below. Update all the pulls with crystal ones like pictured here. Update the lamp to a crystal one, and replace the fan with a crystal chandlier. I created Ideabook Dressing room feminine blue if you wanted to see any of these in more detail. Hope that helps and let me know if there are more questions.

--Paint living and dining rooms a warm white so they all seem to be one space. (I can't tell what color walls are. Next time, show well lit rooms in daylight.) ----Long, low white shelf/cabinet across the entire TV wall with just TV above since it's so large. This will streamline the room tremendously. No art around TV since screen. Relocate favorite art pieces--not decor items like mirrors or clock--to a gallery wall in dining room--best art works only. Lose the big blue bottle and other "stuff" on the floor. The room needs something call "negative space," open areas that add airiness to a room. It takes awhile to get used to negative space, but it feels calming after a while. --Move corner chair to face the other armchair with floor lamp in that corner to the left of TV. --Get a rectangular coffee table up on legs so its reachable from all seating. These gives you a conversational connection. --Remove side table and table lamp. It's blocking flow, which is stressful. That will make a bigger difference than you think. This way people can move around the couch from either end. --Sorry, but declutter all stuff from dining room as well since it adds to the visual clutter of both rooms. --Put smaller round dining room mirror by front door with a shelf there for keys, etc. Having a funcitonal place for practical items is destressing. --Remove living room mirror entirely. It's is too big and reflecting all the clutter. --No plaid throw hanging off sofa. If you need it to curl up, fold it in a nice basket. --

We have this butlers type kitchenette upstairs and we always need the refrigerator for drinks etc as we mainly use upstairs family sitting area- formal one is downstairs. We put our refrigerator in a corner of the sitting area / dining area for easier access and more space upstairs. Many people have started to do this, perhaps if you could find a place for yours just directly outside the kitchen area, you can use the refrigerator space. Just my thoughts anyway.