If you do not want to carry out expensive structural alterations such as removing a non-load bearing wall between two rooms, there are many relatively simple techniques you can use.  Paint, wallpaper and fabric can all be used to create the impression of better proportions in a room.

            Dark paint with a matte finish will give the ceiling the appearance of being lower.  A dark stained, painted or carpeted floor, combined with the darker ceiling, will enhance this effect.

            As with too small rooms, you can add interest with geometric wallpaper or trellis design.  A painted mural or scenic wallpaper would have a similar effect.

            One luxurious way to counteract an over high ceiling is to create a tented room by stapling fabric to the walls and fastening fabric on battens to the ceiling.


This room, which uses Michael Devine Home fabrics, is quite extravagant. Between the pedestal, chandelier, floor lamps, six different textiles, and floral arrangement, there's a lot going on. Normally, I'd pass over this style of interior design, but I was immediately drawn to its tented drapery. With a busy pattern like the fretwork shown here, I'd pare down the furnishings and accessories to solids and clean-lined shapes, and lose the fringe! The tented drapery is already the center of attention; too much else going on just competes. You could also go with solid fabric for the tenting, and upholster the sofa in a bold pattern to create a focal point within the room. What do you think? I think it's a wonderful alternative to wallpaper, and it creates an intimate setting.
Source-Canaan Designs
11-19-2008

            One mirrored wall will make a room seem longer and more in proportion.

            Add a deep cornice all the way around the room and emphasize that further by adding paper or stenciled borders affixed with wallpaper paste.

            Break up wall space with a dado made by fixing lengths of molding at waist height and either papering or painting the area below with a contrasting or darker color to the walls above.

            Eye catching headings for windows distract the eye from the height of a ceiling.  You can decorate a cornice board with fabric, paint or stencils, or simply wind swags of drapable fabric, such as muslin or cheesecloth, around a curtain pole or rod.
           
 Whatever you do, remember to reuse and recycle whenever you can!
Eco-friendly+Eco-nomical=Eco-fabulous!