A family room is an informal, all-purpose room in a house similar to a living room. The family room is designed to be a place where family and guests gather for group recreation like talking, reading, watching TV, and other family activities. Often, the family room is located adjacent to the kitchen, and at times, flows into it with no visual breaks. A family room often has doors leading to the back yard and specific outdoor living areas such as a deck, garden, or terrace.

The distinction between a family room, a living room, and a recreation room may be fluid. In homes with more than one, the living room is usually the more formal room, often reserved for guests, special occasions, and the display of items such as antiques or artwork. The recreation room is typically in the basement and used for games and playtime. In homes with only one, the terms are generally synonymous. It is not uncommon for someone who grew up calling such a room by only one term to have no idea of the distinction between the two.^{[citation needed]} In floorplans, a "great room" is where the living room and family room are combined into one high-ceilinged room adjacent to the kitchen.