Here are a half-dozen suggestions on decorating a small room to make it not only seem bigger, but to make it serve you better, too.
1. Stretch short walls visually, and functionally, with strong horizontal shapes, such as book cases or wall units with shelves.
2. Use some lighter colors because they tend to increase the sense of space.
3. Be sure to use furniture of the correct scale for a small room. Avoid too many extra large pieces which may be fine in a bigger room, but not in a small room.
4. Usually, wall-to-wall carpet is preferable to scatter rugs which break up the floor into too many lines.
5. Use solid colors or small patterns instead of bold patterns.
6. You can expand space visually by using some mirrors. It' amazing how much more depth, and additional space a room will seem to have with the proper use of mirrors.
And another good idea is to shop here for good furniture selection and ideas for all the rooms of your home.