Venture into the great outdoors and you just may find new ways to maximize your home's living space. Consider the charmingly weathered elements on this terrace, which has all the features of a cozy indoor family room—outside the back door. "I wanted to create a room where nothing is too precious, so there's no worry if it rains or the retriever climbs on the furniture," says its designer, Cindy Rinfret, author of Greenwich Style (Rizzoli). But the room retains a certain formality thanks, in part, to the limestone mantel and the mirror framed with a salvaged window guard above it. Neoclassical elements in stone and iron—a column capital, urns, obelisks, and the mirror's garland motif—plus a neutral color palette give the space an elegant feel. For ways to assemble a sophisticated outdoor room of your own, read on.