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Furnishing a small dining room can present a challenge, as any small space can be challenging. However, you may very well end up having a more efficient and attractive space since a small dining room can force you to focus on exactly what you need.. Scale might very well be the single most important factor to consider especially when we are furnishing a dining room. Your dining furniture should be scaled according to the space you have.
A limited color palette may be a good place to start. It is easier to work with a lighter or neutral color palette as it can make your room look airier. Contrasting or complementary colors should only be used as accents. Read The Case for Neutral Colors This is the safe approach. If you are confident around colors, a bold color scheme may work just as well. The trick is not to get too fussy, and just keep it simple. Transparent material such as glass, Plexiglas, or acrylic can make your dining furniture "disappear" leaving you with lots more visual space. Remember, though, that this is more about appearances than anything else. You will still need to measure to make sure that you leave enough space for people to maneuver easily.