Without the area rug, this is some patio furniture. With it, it's an outdoor living room. A few "indoor" details like candles and plant stands make it feel more cozy and roomlike.
This "room" was created with PVC pipe and a few yards of gauzy fabric. Sturdy, modern outdoor furniture gives it a more permanent feel.
Use your exterior walls like you use your interior walls: paint them, hang art, add shelves.
I just love this one. Layered rugs, a simple fabric canopy, and a collection of throw pillows create a cheerful, eclectic room. There is nothing here you couldn't get at a flea market or garage sale.
Comfortable seating and outdoor art make this space an inviting place to hang out in. Pillows, throw blankets, side tables and area rugs all add instant coziness.
You don't actually have to have a party to create a festive atmosphere. Including indoor furniture, brightly colored linens and a few other bright touches make an ordinary picnic table look like it's ready to entertain.
Stringing lights over a table creates a "ceiling" and turns a fairly plain setup into an elegant outdoor dining area.