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.
Layering rugs is a great way to add dimension and interest to a room, and it can also solve a multitude of design dilemmas. If you’ve recently moved and your old rugs don’t quite look right in your new.