Install a drop ceiling or other ceiling cover if applicable, as basements may already have a finished ceiling. Hire a professional to install the ceiling or do it yourself. Other options for unfinished basement ceilings include hanging fabric to cover ductwork, wires and pipes or painting the pipes.
Install wood paneling on bare concrete walls or hire a professional to do the job. If you don't want to put up the money for wall panels, paint the concrete or put up fabric "wallpaper." Clean the concrete first to remove any dust, loose mortar and spiderwebs with damp paper towels, whether you're painting or putting up fabric. If you're painting, apply a clear, waterproof sealant to the concrete and allow it to dry for 24 hours before applying a general-purpose primer. Primer dries in about two hours, but check the manufacturer's instructions for a specific drying time. Touch the wall to check if the primer is fully dry before painting, then apply paint in a few thin coats rather than in one thick coat. Create a mural or other patterns if desired, or go with one solid color. If applying fabric pieces as wallpaper, use adhesive to keep the fabric on the concrete. Sheetrock, or drywall, is another common finishing method for basement walls. This is accomplished by applying what are known as furring strips to the concrete with building glue as your base before applying the sheetrock.
Put down wall-to-wall carpeting or strategically placed area rugs of varying sizes to cover the floor. If you don't want carpeting installed, collect carpet squares and larger pieces to make your own multicolored carpeting. Arrange carpet squares and patches on your floor so they fit together as much as possible without attaching them to the floor.
Arrange assorted furniture pieces, such as a couch, loveseat, chairs, entertainment system and a table or two. Place the entertainment unit or television table near electrical outlets. Center the couch and other pieces around the unit as desired. Set the furniture in a circular formation to create a cozier den, or create a standard box or square design. Add desired throw pillows and afghans, including pillows big enough to use as additional seating.
Add wall decor pieces if desired. Hammer nails to hang pieces in between wood panels if applicable rather than trying to place a nail on an individual panel, which may cause it to split. Frame posters, favorite photos and artwork; hang mirrors to give the illusion of more space. Use plastic anchors and screws to hang decor pieces on sheetrock; make sure the anchors are flush with the walls. For concrete walls, use all-purpose adhesive to hang prints, posters and other lightweight wall decor pieces.
Set up table and floor lamps if needed to supplement overhead light fixtures. You may want to hang strings of twinkle lights around pipes in unfinished basement ceilings, though all pipes need to be checked before fixtures are applied — hot pipes may result in a fire hazard.