Here are a couple additional pictures of the area just above the entry way as you enter into the living area

Put down a bright rug in front of the door, and put up a couple of pictures on the wall. Much more and you won't be able to get around.

It looks like you have a picture on the wall behind the door? That is a nice touch.......would a mirror work there, too? Or instead maybe? Stencil WELCOME on the door and agree with a beautiful rug being needed. LIttle umbrella stand inside the door in front of the window?

Love the bright rug and mirror ideas. Thank you both!

a rug could get caught up in door & create a tripping hazard, so beware.

not a lot of space for anyone to admire pictures; however a shelf on wall below spindles for keys, plus a mirror would be a nice touch

Definitely a low profile rug for that space. Looks like your door will need that for clearance, too. Your floor is just so pretty and you need it to be protected for wet and dirt.

A narrow wall shelf is a great idea to replace a table.....hang it at table height to be seen as you enter the home. Put something on it that is nonbreakable....just in case.

Add a low profile colorful rug, a ledge and mirror on wall behind door and a picture or two going up the stair wall - that will draw guests in!

I would put a very narrow console around l2 inches deep at the top of the stairs with a mirror and take down the pictures and put the three of them where you have the one picture so it is a collection

I know this is not a decorating answer but if you were to open the low wall and replace it with the post and rail on the upper stairs this would greatly make the entry appear much much larger. It is very easy to do this.

A long mirror will give the impression of a larger area .

Look how narrow that cabinet is.....love it! Only front legs even!!!

Replace railing with solid half wall. hang mirror above a small bracket table attached to the entry wall. Paintback of door a great color ie. tomato, salmon.

Lots of great suggestions, but one I hadn't seen yet was the light fixture. I think I might spring for a really signature piece, maybe even in art glass. It could completely make the look of your house from outside (as viewed from the open window above the door), from the entry and from the living room.

Wow a lot of great ideas everyone, thank you so much. Going to look for a rug first thing this weekend and then start to plan out the other ideas you all gave me. Thanks also for the link to the wall-mounted mirror/shelf. I have never seen those before and think it will be a great fit!

you have a lovely home, the space inside the door is lovely just as it is. my question, what is outside the door? Do you live in a climate you can create a welcoming venue there?

I have a very similar entry & have been wondering what to do there as well. I've bounced around different ideas like rug, mirror, umbrella stand, and very small table. I have a rug, but its not necessarily pretty so it needs replaced. I hadn't thought about the wall shelf.

My wall between the up & down stairs is open with a railing. That does make the space seem larger. The posts & stair treads are stained, but the spindles and stair risers are painted white. I also have white trim in the house so it looks very nice.

I agree with nwduck. First place to start (and one of the easiest things to change) is that light fixutre. Get one that is BIGGER, and hang it LOWER! Something like this could create a lovely effect:

Also (and I just did this recently), I would tear out the cheap privacy glass you have on either side of the door, and put a triple pane, leaded privacy window in. Here's an example: http://www.doorsforbuilders.com/PRODUCT-DETAILS-Stock-Entry-Doors/DB-095_2SL_Mahogany-Dark/popup.jpg

The space seems claustrophobic to me. I would swap out the door for one with glass panes. And, I would paint the area a bright, cheerful color.

Another idea: paint or stencil something welcoming on your stair risers.

Ready-made graphics would make it easy.

Don't forget to finish it off with a ceiling medallion! Decorative molding can make a huge impact for a small price. http://gustoandgrace.wordpress.com/2014/01/17/a-quick-easy-inexpensive-entryway-update/

https://www.houzz.com/magazine/flights-of-fancy-painted-stair-runners-stsetivw-vs~17406947

Your entry doesn't have to be Disneyland, the right piece of art, a light fixture or a cool coat hanger can do the trick.

Do you have room for a small demi lune table by the front door? I used to have this in my bedroom and is perfect by our front door. I have the same tiny entry as you do, except I have more walls. I agree with a decorative coat rack, something sculptural.

The few pieces of art and furniture we can see tell me your style is on the formal and classic side. I'd put in etched or beveled glass flanking the door. Art should be centered 5' above the floor if alone. That will change to 5" if you put it above something. Upstairs, consider replacing the railing with a pony wall at the lowest height allowed by local regs. Looks like you might have a sea view in the distance. When you're ready for window treatments, take heavier decorative rods to the ceiling, or crown molding (which would be a lovely addition to your home.) Then just barely cover the window frames with stationary drapery panels. A new chandy would be the crowning touch for the foyer.

Have you made any changes yet? Did anyone suggest just painting your door?

I have the same entryway in my house and am in the middle of decisions and doing, likewise! I think you should post whatever you come up with! Couple of addendum's to all the wonderful answers. When we moved in, there was (and still is) a huge mural on the wall (largest one of course). I love it. Wasn't sure I would keep it but it is a countryside scene we have all become attached to, so it stays. Since it has several shades of green, we have incorporated those colors into what we change now and then.
However, as an aside, I own a small music studio that I have used large mirrors in to underscore the light and open the place up. To a man, Everyone has loved my space when they first see it. So what if it is illusion--lol!--it really changes your perception of the size and there are hundreds of ideas to temporarily decorate mirrors for seasons or holidays--as I am coming to learn! Also, I have a window above my door but I've never seen one like yours. It is terrific!! Please share pics when you get finished! I'm sure everyone here wants to see them as well!. Good luck.

I like the idea of a mirror and a small shelf to hang some keys. I like the "welcome" stencil as well. Or a nice piece of art, brightening the space.

I like how high your ceiling is, and that you can see the fixture from both levels. Definitely get a fixture that speaks to you - maybe something staggered. Since you have a window up high, it could glisten even when it isn't turned on! We've custom-made glass chandeliers for spaces very similar to yours. Here's some inspiration. :)

http://www.houzz.com/projects/397391/Custom-Tanzania-Chandelier

Thank you everyone for the suggestions. We had a limited budget so I was only able to use some ideas. I got a nice bright (you can't tell from the pictures) rug, found a tiny table and put a plant in a pretty pot and mounted a small coat rack and pretty picture above it. We plan to replace the wall with an open stairwell and the lighting eventually.

Very nice! Pretty AND functional and you cannot beat that. The coat rack is genius!

I want to open our entry up, it is so small. When guests use the space we literally have to stand on the stairs that either go down or up to the indoor space. I want to remove the door frame and add an entry room. Our door has a side light on one side and would like the room to be a few feet larger. The roof over hang is at the height of the second level, horizontal roof line with gutter. I want the entry room to have a separate roof. Can't spend a lot of money since I'm trying to sell the idea to my husband. I should add a photo for ideas or pictures of finished projects (if anyone has done this)?