Keep the upper louvers in place, and hang your drapes just for the lower windows. Remove the lower shutters. After all, not everyone has custom shutters for their celestory windows.

I think I would look for drapes rather than blinds or roller shades. Drapes are dressier. Shutters lend a casual feel and adding rollers/shades would only compound that.

We use Miulee insulated blackout curtains. They are so efficient and fold really flat when opened since there is no liner.

Thank you for your suggestion! I agree that drapes are definitely dressier, and I have drapes in the dinning & living room. The only concern I have for drapes is if I do it on the bottom 1/2 it’s really short. The first floor of the house has high ceilings everywhere except the family room (weird architectural design with sloped ceiling in this room). And then the upper 1/2 is shutters, leaving the bottom 1/2 to hang drapes. I’m a little worried it will make the drapes seem like they are from Bilbo’s Hobbit house…😅 What about nice Roman shades?

I would remove all the shutters.

drapery panels only across the lower windows the light from the uppers won't affect the TV, just lighten the room.

if you still need the uppers covered, then do a sheer with the rod through the top and bottom to create a gathered appearance. can you mount the TV on the fireplace wall Left of the fireplace?

I see what you mean.

These would be nice. The trim adds enough interest yet simplicity to complement the busy lines of the louvers above. Architecturally...these add structure and weight to the wall.

Draw the eye away from the shutters and add something to ground them..and these can be mounted in the inset of the window frame.

https://www.amazon.com/DEJAVU-Windows-Blackout-Filtering-Insulated/dp/B0B3W45SDT

If the upper windows aren't already tinted (either by the manufacturer or by an after-market solution) you should have a tint applied. Natural light will bleach everything it touches over time. After they're tinted you can leave them uncovered, or have motorized custom blinds made. I have a two story living room that faces south. All of the windows are tinted and I have motorized sheer cellular shades on the top windows and operable ones on the bottom. I only raise the top ones if it is a cloudy day and I want more light. Cellular shades are available in everything from sheer to blackout.

What will the new windows look like?

The widow covering is mostly for room darkening in case we watch TV during the day. We installed white Marvin Essential fiberglass sliding windows on the bottom, the top are picture windows in the same collection that do not open.