If you have a fireplace, make it the focus of the room. Arrange the furniture in an intimate arc, rectangle or square around it. And remember, you don't have to be facing it for it to be the focus.
The classic combo: a sofa, two chairs and a coffee table. That's really all you need to create a cozy and intentional conversation area. And as long as people aren't bumping their knees when they sit down, you're fine.
This is a time-honored arrangement: a sofa and two chairs at a 90-degree angle with a side table serving both. A large upholstered ottoman does triple duty as a coffee table, extra seating and a footrest.
If your space is two rooms in one, make sure they are connected by decor, color and style. Here, there is no break between the living area and the small dining area
The colors, materials and modern eclectic style are carried through this open space, but each small section is focused and defined by area rugs and furniture placement.
Use a sofa as a dividing wall. And put it as close to the focal point (here it's the fireplace) as possible without everything's looking squished.
Go miniature. There is no reason a love seat can't be the main sofa. This space is formal and cozy at the same time.
You can go very formal and traditional in a small space. The glass coffee table, mirror and light colors make this room seem bigger than it is.
An open-backed chaise like this one creates a sense of space and openness but keeps things close and intimate.
A built-in sofa is a major space saver.