What can I do with my backyard? I want to do something different and cool. Right now I hate it.?

There is a big hill in the back that was covered with pine straw when we bought the house It slopes toward the house. All the pine straw has washed down the hill so now it is bare with a lot of gravel on top. There are also holes that are dogs have dug. Any ideas on doing something decent with my backyard?