To make a small room look bigger, using the right paint and furniture colors will brighten a room, giving an open feel. Choose light paint colors such as creams, soft pastels, or even a stark white on all four walls. If you're not using white on walls, try using a lighter color on the ceiling than on the walls. This draws your eyes upward, giving the illusion of height and openness, and it also mimics the brightening affect of daylight.
When you're lacking space in a small room, an easy way to make the room seem as large as possible is to make sure most of the floor is exposed. The main drawback of a small room is that there is less space to walk in and physically move. So address this by using hanging shelving systems, minimizing floor clutter and intrusive rugs, and exercising proper storage planning.
Natural light is a small room's best friend because, like the paint color, it opens up the room, giving the illusion of air and space when there actually might not be very much. Try using sheer window coverings over a small room's windows, and hang a large decorative mirror opposite the window that provides the most natural sunlight. The light will reflect off the mirror and bounce all over the room, giving a light and airy feel to a cramped, small space.
Along with choosing a light paint color for the ceiling, making other design choices in a small room that help draw your eye upwards is a great way to give the illusion of height and largeness. Some examples of such design choices are: painting delicate vertical stripes on the wall, use elongated window drapes (that fall to the floor), or installing narrow floor-to-ceiling storage units that are light in color. Again, all of these design elements in the small room help draw the eyes upward, giving the illusion of length and height to a small space.