First, you should pick an interior design theme which appeals to you but which will also add appeal to a tiny space. Having a good amount of clutter in the living room will make the place feel smaller so avoid decorating themes that clutter up the room.
So whether your interior design is modern or contemporary you need to keep in mind the area available and come up with an interior design that makes the best use of materials and colors and allows the final effect to be still be one of space and lightness.
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Accent Walls. Are you ready for a bold color in the living room? But, do you think it would be too much for the entertaining area of your home? Well, you have an option in the form of an accent wall. It can be the focal point for the living room and a center of attraction for the guests. If you are a color-lover, you can use multiple colors on the accent wall. Think of stripes or blocked patters to create a beautiful accent wall. You can also consider wooden pallets or wallpaper for the accent wall.
A slightly larger living room will take kindly to old style Victorian ideas for decorating. You will get a feeling of opulence and richness, especially because of the generally mahogany colors of the furniture. Furnishings and drapes are generally quite heavy and require the use of lining and elaborate methods for pulling the curtains to let in light.
Visual Balance. Create a good visual balance between the used and unused spaces. By used space I mean the floor that has been occupied by the furniture pieces. It is not necessary to fill every corner of the living room.