SFGate

elsramirez Here's another pic.

Vivian Rase Thats a tough one. It's almost as if your living room is a walkway to the kitchen. If it were me I'd experiment with floating the sofa in the room in order to make it look less like the traffic pattern and more like a room. It's hard to say, but from what I see, pulling the sofa out and placing it with the back toward the dining area might work. Traffic would be diverted on the perimeter of the seating area. Then you could mount the tv on the small wall that you now have artwork. I love some of the new orangey colors...persimmon, coral for pillows and in the rug.
If you do float the sofa, I always think it looks more finished if you place a console table behind it. Then you could also add some lamps.

Vivian Rase Another rug and you might consider two rectangular ottomans in place of a coffee table.

elsramirez Thank you for your suggestions Yes it is like a walkway. I absolutely hate it! This is our first home, but we definitely plan on moving into a bigger home in the next couple of years. As for now, I have to work with what I have. I will try to rearrange the furniture. I'm little confuse on what you said about the back of the couch facing the dining area. Do you mean the chaise or the other piece of the sectional?

Vivian Rase The sofa (larger section) would have the back to the dining area, making the chaise extend into the living room. But try other placements as well. Slip furniture movers beneath the legs and you can slide it into many positions, but the best view of a sofa generally is directly facing you. It would look nice to walk in from your front door with the sofa oriented toward you.

Keitha Here are a few rug suggestions