I would paint the door and the trim around it the wall color, in the same finish as the walls. Have it blend in.

I dont have much space to add furniture in that area i am afraid if it make the space look smaller

Perhaps a gallery wall of favorite art? I think it would be fun to keep it random. Some pieces coukd be hung lower than would be expected.

It doesn't look like you need anything there, however it looks like you could easily place a bench, console table, or just a piece of artwork there. Below are a few ideas from a few of our designs:

Modern Farmhouse Rebuild · More Info

Traditional Renovation · More Info