^Agree with jck.

The table and chairs look great, but there are several items to address in this room.

table needs to be turned

A rug would definitely help bring it together and help define the space, IMO.

I would like to see the rest of the space surrounding the DINING room but it looks like once you decided that was the perfect spot for the banquette everything was off from there. Definitely turn the table and utilize all the space you have... no reason to snug up to one wall. Consider mural wallpaper.

@jck910 might have been talking about this dilemma? https://www.houzz.com/discussions/6418802/dining-wall-dilemma

Please turn the table.

Consider strongly, ELIMINATING the niche altogether. It will keep begging for a reason to be there, and unless you find a mural the suits it, and treat it as art? It will keep begging for that settee. A simple process of some studs and sheet rock and paint and you're free of a totally unnecessary element in the room, and free for art.

You need a rug.....

The small window mirror and word sign are too small and insignificant on their walls. Use them elsewhere.

I would find the rug, pull a PAINT color from it - the pale gray walls are doing nothing for the settee , or......if you want grays? perhaps the settee was not the best choice.

Provide dimensions, and it will make it simple to advise a rug, but 8 x 10 is a good guess.

As to what rug?? show more of your home.

No offense..........."DINNING" s/b "DINING"

Wallpaper could really warm up the room and set the color palette.

Adding color to the niche can add more interest.

Find a rug first, then you have a color palette. You can paint the entire area one color and use the niche for a fabulous, large piece of art. Or a narrow console. But give the room a personality with a rug first.

Here are some dining rooms with rugs.

Lighter theme

Darker theme

Simple tables

Love those rooms you posted, Red Ryder. So much beautiful color. Why is everyone here so color-phobic?

You really need to turn the table, it's too tight a squeeze in that direction. put a rug down, Pick a color from the rug to add large art works with those colors in them. Remove the nitch...

"Why is everyone color phobic"?

Because they "read" the internet. They "read" Instagram, Amber Lewis, Studio Mc Gee, West Elm, RH, Pottery Barn, and the rest, where the easiest sale of anything is a thing that "goes with" any other blah thing?

They don't read Elle Decor, even Traditional Home or Veranda, or Architectural Digest, nor do they browse the myriad of design tomes on the shelves at a local Barnes and Noble.

They are afraid of contrast, of color tension like this,,,,,,from a less obvious pairing in the wall color and dining chairs : ) which is so fabulous.

That's why ....in jmho lol

Paint,

area rug,

wall hanging

and a table that fits or is turned to fit would be spectacular.

Just in case you were not planning on redesigning your whole room and painting, moving furniture is free. Try turning your table the other direction. See what you think. A rug would help tremendously too.

How tall are your ceilings? Everything from the chandelier to the artwork seems too high. I'd place the center of each piece of artwork at the level of your eye. The room will feel less empty.

To all of those who preach about color phobia, maybe you have neutral phobia? Please show me pics of your chartreuse and cornflower blue dining rooms. :) It is an over simplification to say that white is safe, trendy, and boring. Color tension is one of many options for a room. The right artwork, light, texture, and proportions can make any neutral room pure perfection. Here are pics from the current homepages of AD, Veranda, Traditional Home. Hardly a riot of color.

OMG I can just imagine the apoplexy if someone posted that last bathroom photo in a Design Dilemma and asked if they should use the green knobs!!!

And no, I do not have neutral phobia. While my home has rooms with all shades of blue, emerald and olive green, chinese red, pink, burgundy, navy, lavender, periwinkle, yellow and peach, I love a well-designed and decorated monochromatic beige/cream/tan/white room. What I think is sad is the knee-jerk reaction that gray flooring/upholstery/cabinets/tile/etc. is de rigeur in every. single. room. Because it will all go together. Actually nothing is farther than the truth.

A large tapestry could cover the niche ?

Oh, and in the beautiful photos above from Veranda, etc. I do see some of the dreaded "brown" furniture, which adds so much life to any room.

Alice, I think it depends on the specific tapestry and the size. Do you have any in mind?

I would actually get your rug first if that is a plan? The images posted previously by the pros here are all beautiful but I’m not sure perhaps it was mentioned earlier your style and the surrounding areas? I do agree to turn the table. So many possibilities!

Could we see the table turned? It's free and can easily be turned back if you don't like it.

Thank you, nelliebean

Wow so many helpful suggestions. It looks like the OP will have plenty food for thought if/when she returns.

Hope you see this

If table was turned, the niche could then be taken advantage visually and the dining set won’t feel as squeezed in. As well, items on wall are random/not drawing the eye. Therefore suggest an arched mirror in niche to reflect light/make the space feel larger and add impactful art on the right over the settee.

There are comments around adding a rug, but I think it could make room feel smaller (can always test/return if need be). I’d also skip painting niche or adding wallpaper so the small space is not interrupted visually.