Modern families are frequently so busy that not only does the family not gather around the dinner table for their evening meal, they do not gather around any table at all. Grabbing meals on the go has made the formal dining room almost redundant.
Since the space is rarely used and may even be acting as a catch all for mismatched furniture from the rest of the house, you may want to reclaim this space and turn it into a den. A den is a wonderful sort of room that absolutely suits a family needs. For one family it may be a game room, while for another family it may be a reading room or media center. For all families it can be a great space for entertaining. How you furnish the room completely depends on how you plan to use it.
Coffee Table Ottoman
Media Center
One way to be sure to get some use out of the room is to make it into an entertainment room. In this case your will want to have your media center be the focal point in the room with comfortable seating strategically placed for movie viewing, game playing or conversation. Upholstery should be sensible, stain resistant fabric like leather or micro fiber.
If you have a very large room you can also add a pool table and arcade games. Before you do though consider how and when each portion of the room will be used to avoid setting up conflicting uses in the room.
Family Room
If you are tending towards a family room where you can relax and read a good book, play board games or just sit and talk, then you will want to look at muted neutrals with shades of blue and green to create a calm and relaxing room.
If the room has a fireplace you have a built-in focal point. Again look for comfortable seating, and you may want to include a soft area rug and some big floor pillows. Smaller tables to hold drinks and a larger table that the family can gather around for puzzles and games make the room more usable. Make sure that you have adequate task light for reading or crafts as well as natural and ambient light.
Lounge for Entertaining
If you like to entertain then why not move everybody out of the kitchen into a lounge area. While you will want to incorporate plenty of seating into your design, you will also want your furniture to be easily moved and a slightly smaller scale, which will encourage conversation groupings to build around the conversation instead of around the furniture. Ottomans can double as coffee tables or seating, making your room very versatile. Accessorize the room with favorite photos, interesting lamps and vases and your favorite area rug and artwork.
In a large room you may want to make a multi-use den allowing two concurrent activities to take place. Take care that the noise from one activity will not preclude doing the other activity though. If your room feels too vacuous, create a room within a room by defining individual areas with area rugs or an open bookshelf.