Functional furniture refers to pieces designed to serve multiple purposes, maximizing utility in limited spaces. Examples include sofa beds, which provide seating during the day and convert into a bed at night, and storage ottomans that can be used for seating while also offering hidden storage for items like blankets or toys. This type of furniture is especially popular in small apartments or homes where space is at a premium. By combining style with practicality, functional furniture helps create organized and efficient living environments, making it easier for individuals to adapt their spaces to their needs.