I think if you lighten up the paint with a light neutral color, and cornice boards with a lighter fabric, that would give the right amount of contrast to highlight your fireplace. It is an awesome focal point that should be emphasized...good luck.... :)

these 3 pics reflect your room as it stands now. Excepting the 1st shows lighter walls, 2nd painted woodwork 3rd other window covering. (Your personal pieces appear appropriate.)
Does this help?

I agree with the above comment - your collections are too small for your fireplace.
Here is a photo that shows good scale.
http://houzz.com/photos/2296046

The Mantel could use some corbels

take a look at www.stand-out-fireplace-designs.com I get snagged artistically with fireplaces frequently. That site really helps. GL

The existing lighting does not seem to accentuate the architectural feature of the stone and casts dark shadows. The lights also seem to glare out the texture of the stone. I would suggest changing the lighting to warmer accent spots to highlight the feature and the art. A good local electrician or lighting advisor should be able to advise the best type of lighting and locations.

Taking your picture up a few inches would help. Also, group your candle sticks together to the left of the portrait and the ornaments to the right.

Here's a VERY inexpensive suggestion. The uneasy feeling is just due to color coordination,
improper lighting and lack of focus on the fireplace. I photoshopped your fireplace to give you an idea of what lighting and color change can do. God Bless!

I did not mean to be insensitive to the sentimental value of the pitcher and the basin or the Thomas Kinkade Print. The basin could certainly be placed on the lower left side of the fireplace and I suggest a few very realistic faux Calalily flowers in the pitcher. However the Kinkade print is not doing the fireplace justice, nor is it doing the print justice.
I suggest that a new spot be found for it or you print out this photoshopped picture and bring both the copy of this mockup with your Kinkade print to a professional frame shop and get a beautiful matt and frame put on the print that gives you the same coloring, weight and warmth as the wood frame that I have placed above your mantle in the mockup.
As for your bear that was in your original post, it would look beautiful on the upper right side of the mantle about 8" to 12" in from the right edge of the mantle. Consider placing an accent bow that matched the room around the bear's neck to bring everything together.
You have a beautiful home, I wish you much rest and happiness in this room.

Thank you guys so much for all your all your help. You have given me some great ideas. KaDe thanks so much for your suggestions and for photoshopping - I'm such a visual person that really helped.

I would recommend getting a clock on there like ours. By the way, what do you think of the set up?

The clock is very nice. Ironically, I too have a clock. Here's
another reference photo to add to your idea folder.

Modernisforlovers, I like your set up a lot and I love the large mounted piece.

You need some LED puck lights under the mantel and between the beams to properly light the FP.
The blockiness of the cornices at the windows is not helping either. I'd advise drapery panels on a decorative rod. If you need blinds try soft romans. I'd suggest a pretty drop leaf side table where you could raise one leaf and put your your pitcher and bowl, maybe the figurines and hang the Kinkead behind it. Clocks appear to me to be the big box stores' answer to lazy decor. Look for a serious real painting, not a print, that is larger than the TK you have now. Add 3 large chunky candlesticks and candles on one side and a large ceramic vase or urn on the other.

I'm thinking about all the previous suggestions and am considering options ( and budget). I took some pictures in the daylight & from different room perspectives.

What do you think of moving the Kincaid painting to the wall where the small trunk is and replacing the trunk with either a table (as suggested above) or small chest? I could put the pitcher & basin along with the small figurines on top. I'm thinking something shabby chic since there is a ton of wood in the room already. I love the library paneling even if it isn't current, so I don't want to remove it or paint it. Suggestions?

Ignore the picture on the floor - we are also doing work in the bedroom:)

Our custom lantern designs.

Agree with KaDee...perhaps new decor on fireplace. New color of paint on walls and a new mantle. More rustic feel...perhaps a wide beam reclaimed wood mantle allowing for larger decor on mantle help accentuate large stone on fireplace.

We are finishing up 3 projects and I wanted to put an update on the mantel. Taking into account everyone's suggestions, our budget and our personal preferences this is what we came up with. I know we still have the boxy cornices and the picture is still too small, but we did change the decorations and added lighting. Might not be perfect, but we are happy.

mamao, I think that looks great! Good job!

Looks great! Your fireplace looks very grand. How is your other room coming along?

Thanks Handyman!

Last place, thanks for the compliment. The bedroom and bathroom are almost done. Shower doors go in on March 29th and the bedroom carpet will be installed in 2 days. Then we can move everything back in. Really excited to see it all put together!

Hope you show us the completed rooms. Yes, its pretty cool to get it done.

I think what you did looks great! With the large pieces on either side of the mantle the painting does not seem to be too small at all!

You said you added lighting, but it seems to be indirect and not centered on the painting. Is it a potlight in the celiling or something else? I think a floodlight (versus a spostlight) pointing directly at the painting might solve your dilemna by bringing your beautiful fireplace and painting into the light (so to speak!). Ifknow the effect I'm talking about (I have it at my home) - maybe a lighting expert can tell you how to "tweak" this lighting to great effect.

Good luck! (love the pups!)

I have a fireplace dilemma too! Envious of the rock surround on yours and the other posted on this discussion. Houzzers, need your input! http://houzz.com/discussions/411320

Leahray, thanks for the encouragement; seemed like we rethought this decor at least 4 times. And by that I mean bought and returned!!

The lighting is a track with 3 lights, but only 2 are up. We ran into a problem with glare off the picture if the lights were aimed directly at it. This is the best we came up with. Any thoughts?

Leahray, we love the pups too:)

Shannon, your home looks lovely. I definitely have no ideas for you - it was all I could do to change mantle decor! Good luck with project; it looks like it could be a lot more expensive than mine.

Thanks mamao! I'm okay with the way my fireplace looks now but know it can look a thousand times better. Your mantel looks great now! Happy houzzing!

I agree, looks very warm and inviting!. Well done!