When we first created baby West's nursery bay (full post here), one of the things I struggled with the most was lighting. We definitely needed a light source, but it had to be very specific for the space. Most nursery table lamps would take up too much surface space on the tiny chest of drawers, and most overhead lighting was either too bulky or would've glowed too hot in the little closet nook. I eventually found a combination of accent lighting we loved, and that can be easily moved and adjusted for safety as West grows.
The design I use most frequently is a strand of warm-hued battery-operated twinkle lights, dropped into a rattan backpack. It hangs on the wall or from a curtain rod like a lamp, and can be toted around the cottage like a glittering flashlight.
Here are some of my favorite items and/or makers, in case you too are struggling to find soothing, practical lighting for your small space.
As always, please keep safety in mind when decorating your home. Take particular care to avoid choking, strangulation, shock, and fire hazards when it comes to nursery lighting.