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Molding question for staircase / living room

last month

The main staircase in my house is at the back of our Living Room and we’re looking to differentiate the two spaces a bit. We’re thinking of adding molding up the staircase wall and then wallpapering the living room … do you think this is a good idea? Where would we end the molding at the bottom of the stairs? The space is a bit tricky, thank you!! Including 3 photos of my house and 1 inspo photo

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