Use drapes or curtains that cover both the transom window and window below for one uniform look. Alternatively, if you wish to let light in above and want privacy below, opt for curtains that are sheer at the top and solid the rest of the way down. These type of drapes can be made easily by choosing a sheer fabric and solid material in the right dimensions and sewing them together. Choose colors that go well together.
A valance is an ideal window treatment for a transom above a door. Valances are a short drape and come in a variety of colors and fabrics. Choose a solid, straight valance for a contemporary styled room or a ruffled print for a more traditional style room. Opt for colors that coordinate well with the colors on the walls of the room.
Blinds and roller shades can be customized to fit any window space including transoms. Blinds can be sheer, wooden or plastic. Roller shade options included those with straight hems or scalloped hems. Both blinds and shades come in all kinds of colors. If you choose blinds, you might have to add a chain or cord to the existing cord to open and close blinds because transoms are usually near the ceiling of a room.
An option to decorate a transom window is to cover the glass with a decorative window film. Decorative films come in a variety of designs including stained glass, solid colors, floral patterns, frosted sheets or with an Oriental look. Some films are self-clinging. Decide whether you want to allow light to come through when choosing a window film.