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A small room can be elegant. What little princess wouldn't love this cozy nook. You could use a secured wooden shelf (IKEA), some curtains, and a twin or toddler bed. The sconce doesn't have to be hard-wired. Don't have a little princess? This would be perfect in an office for a guest. A trundle bed would allow sleep space for 2.

Better Homes & Gardensfrom Better Homes & Gardens

Home Office Storage & Organization Solutions

Hidden Office, great for a bedroom

Apartment Therapyfrom Apartment Therapy

Southwest Semi-Finalist #1: Laura's Fresh Start Studio

Small studio apartment layout ideas.

Listoticfrom Listotic

29 Sneaky Tips & Hacks For Small Space Living

#1. Ceiling Shelves -- utilize all of that vertical space! | 29 Sneaky Tips For Small Space Living

BHG Style Spottersfrom BHG Style Spotters

Organize This: Small Office Nooks!

Curtain closet desk ••• SMART if you have any extra closet space!

Listoticfrom Listotic

29 Sneaky Tips & Hacks For Small Space Living

#21. Use curtains to separate spaces in small shared bedrooms! | 29 Sneaky Tips For Small Space Living