You can see how to decorate a small living room in the following article, which is written by Laura Gaskill in Houzz.com.

Though all tiny spaces pose design issues, the living room is particularly challenging because it is where you will most likely spend the most time and entertain guests. How do you find a balance between making the space feel as large as feasible while also fitting in additional seating? What kind of furniture should you get, and where should it go? These design suggestions can assist you in making the most of your available space.

Mirrors and wallpaper can be used.

A small living room, especially one with few windows, might feel confining. By hanging a mirror on top of wallpaper, you can create a focal point, increase light, and add depth all at once. It’s even better if you can place the mirror opposite from a window, as the mirror will reflect the view outside, creating the idea of an extra window.

Add in some hidden storage

To avoid clutter, choose furniture with built-in storage. As a coffee table, a trunk or storage ottoman works well. Instead of a console table, place a small chest of drawers or a small credenza along the room’s perimeter to increase storage choices.

Take Advantage of Vertical Space

Take use of the extra space in your small living room if it has high ceilings. While bringing the eye upward does not help with squeezing in an extra seat, it does help to give the sense that your room is far larger and grander than it would otherwise appear. Create an eclectic art gallery in the vertical space.

Reduce the Sofa Size

In some cases, a full-size sofa is insufficient. Instead, try on a slimmed-down love seat or a small sofa. For the lightest look, choose one with clean lines and bare legs.

Fill a corner to the brim

It may seem paradoxical, but if you have a small corner living room, going with the largest piece of furniture available will sometimes make the area appear larger. Why? A large sectional is comfy and can seat a lot of people, but it also helps the space feel tidy because it appears to be one piece. In a tiny room, a modern sectional with clean, straight lines works better than an overstuffed version.

Plants should be included.

Plants, like wallpaper and mirrors, can help to bring depth to a tiny living space. Lush foliage softens corners and gives the impression that there is more space in the room than there is. Plants work particularly well in corners, as well as beside or behind chairs and sofas.

Multifunctional furniture should be used.

Each piece of furniture in a compact living room should earn its keep. Consider ottomans that can be used as a coffee table or extra seating, nesting side tables that can be moved about as needed, or multifunctional little stools that can be used as seats or tables.

Storage is built in.

Rather than allowing a slew of small pieces of furniture (a bookcase here, a chest there) to take up valuable space, take the plunge and dedicate one entire wall to storage. A floor-to-ceiling storage wall may hold anything from books to a media center, and even a pull-down desk if desired.

Leave the sofa at home.

Who says you have to have a sofa in your living room? Instead of looping two, three, or four armchairs around a coffee table, try circling two, three, or four armchairs around a coffee table if room is limited. Make the coffee table a tray-topped ottoman that may be used as a seat, or add a pouf or stool to the mix for further versatility.

Consider attempting a ‘invisible’ piece.

Because they take up no visual space, acrylic, Lucite, and glass are excellent choices for a tiny living room. In one of these clear materials, make a coffee table or nesting side tables with a waterfall edge.

Small-scale furniture is the way to go.

Full-size sofas and hefty armchairs aren’t the only options for living room furniture. Because the average room size was normally very tiny until the previous half-century or so, antique shops are a fantastic area to hunt for small-scale furniture. Look for compact settees, loveseats, and chairs that will fit in with your decor.

Keep a Stockpile of Extra Seats

It may not be practical to have as many seating alternatives as you would like in a compact location. One solution is to keep a few folding cafe chairs or stacking stools in a closet or beneath a bed, where they can be conveniently retrieved when company arrives.