Although it might seem like wallpaper is too busy for a small space, used thoughtfully it can actually make a room appear larger. By choosing one accent wall or one architectural detail to highlight in your space, you can make a big statement on a small scale. The best part? Papering a small space means you can splurge on the pattern you really want...
In this hallway, a mirror reflects one patterned accent wall, making the space appear larger. Photo: Palace White from Urban Source.
Wallpaper with a metallic pattern reflects light. Photo: Graham & Brown Linda Barker Serenity Wallpaper from Design Public.
Subtle patterns add visual interest without overwhelming. Photo: Montague Wallpaper from Twenty2.
Vertical Patterns can make a room seem taller. Photo: Bamboo Wallpaper from Ferm Living.
Wallpaper can be framed as art, used in a nook, or used to highlight an architectural detail. Photo: Herringbone from Palace Papers.
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Beth's Romantic & Retro Residence
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The Big Book of Small, Cool Spaces 
Apartment Therapy Presents 
The Eight-Step Home Cure 
Shaw's Original Fir...
How To Make Perfect Bacon in the Oven
How To Cook Tender, Chewy Wheat Berries on the Stovetop
Wallpaper that has some perspective depth in the pattern can also make a room look larger.
if i do get the guts to submit my apartment for Small Cool by the 14th, you'll see my dramatic wallpaper section. ;-)
check out the bright graphic wallpaper that I just put up above the chair rail in my all-white kitchen!
http://mylittleapartment.blogspot.com/2008/02/if-i-didnt-live-here-id-move-in.html
best decision I've ever made in my tiny studio apt.
i'm in love with the idea of grass cloth paper right now