Love the armless sofa-bench! Try using it in the center as a "cross-linking" piece between the sofa and chairs. That way people can sit on both sides of it, conversing with the sofa people and the chair people. Put the chairs where it is and use the side table from the left of the pic, or the one with flowers, between them. You'll need one huge rug to anchor the space or two smaller, and very similar ones, to put on either side of the blue sofa-bench. The other two side tables are too tall and too short for your seating pieces, so ditch them. Use your coffee table between the sofa and armless sofa (18" away from each of them.) Here's a chart for judging table and lamp heights as you'll need to work on that for balance. Please try this arrangement, and post by commenting and using the Attach Images button to add pix of the update. We'll tweak it on out from there.

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

Hi Nishi, Beautiful furniture and a very cute cosy nest you have. To begin with replace your existing coffee table with a hard wood simple coffee table. Replace your cushions with an assortment of pink, turquoise and golden yellow in different sizes and shapes, this will add some brightness to the room.Replace the pictures on the wall with a big mirror as per the wall size and add a nice frame to it. On the shelf on the picture wall place the candle stands currently on the centre table. The stools can be replaced with a nice upholstered ottoman bench in a printed fabric as sofa is plain. Cover the entry door with curtains as well so that it gives an illusion of a single wall behind. Since the wall behind the bench is already textured do not put anything on the wall. Remove the white bench there, instead put two big white teracotta pots there of different height and put bamboos on it. Finally put a blue/brown shaggy rug below the coffee table to complete the look. Hope you find the suggestions useful. Also you could put a few glass shelfs on the wall behind the 3 seater and place all your small knick knacks on displayLike how I have done on my wall

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.