I would use whichever Asian piece fits the tv as a tv console. Then purchas or have custom built...two large column bookcases one on each side of the credenza...to reach to the soffit. Install glass shelves in the bookcases. Get rid of the cream sofa...I can't tell what is opposite it, but, it is white. It looks like you have too much large furniture all fighting to have their style be "the winner" and nothing meshes. Use the lower asian cabinet under the window...then a cluster of the traditional style chairs grouped for conversation. 2 and 2 facing each other perpendicular to the window. The small tables could be between the chairs. They could be very similar to the armchair that is in the picture, not matching...but the wood frames all the same color and the upholstery the same. Then repeat the upholstery in decorative pillows on the sofa. Using the armchairs in the traditional area, gives you lots of flexibility as you can easily move them over facing the sofa when you wish to create a larger conversational grouping, or facing the tv when there is something special you want to watch. Get rid of the curio cabinet and the round glass table as they are too much in contrast with the leather sofa. Paint the smaller tables in a bright color to add a pop of color...repeating the color in pillows on the sofa. (I see an orangey colored throw on the sofa...that would be a nice accent color) You could add lights in the bookcase columns for interest. Then, look for an unusual lamp or chandelier to hang in the corner behind the curve of the sofa. I would hang floor to ceiling draperies with the large grommets in the top to repeat the medalian on the asian pieces. Add a wide band of the accent color to the bottom of the draperies. Place 2 unique wall sconces on each side of the wall unit...something that draws the 2 styles together, maybe with hints of the accent color. A large piece of artwork, which includesvthe accent color, to be hung over the sofa. It would be fun to have a frame in an ornate traditional style, but painted to match the asian pieces. Thanks for the opportunity it was fun!

I thought of two options for the headboard one is keeping the way it is now i.e gold color or change it to dark brown velvet, because my bed is wooden (dark brown), so I thought the headboard will just look like a part of the bed, and I could do the drapes of sea green color. The sofa chair next to my bed is not there anymore, so on this wall its only the bed and the window. Bedding I have to change, but thats not an issue as of now. My main concern is the drapes and the headboard which have to go with the wallpaper well.

that is what i have added if you can see the pic above.. want some suggestions on partition that i can use between dining and sitting

I feel partitions are not needed. You already have too much for the space. Adding a partition will shrink the space further. The simplistic solution, you do not wish to discard any furniture would be to paint all the walls in lighter pastles. And use some wall painting frames to highlight certain walls.