Take a cue from designer Kristen Buckingham and extend your gallery wall over the door frame. The artwork on this gallery wall matches the mood of the room in its joyous, eclectic look. Peek at more of Kristen's work here.
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This is a nice-looking living room with smaller rug. Perhaps the key is to frame the rug with sofas / sofa and armchair combo / sofa and the window. And another trick is to fill up the room so the size doesn't look awkward.