The term great room denotes a room space within an abode which combines the specific functions of several of the more traditional room spaces (e.g. the family room, the living room, the study, etc.) into a singular unified space. Great rooms are typically at or near the center of the house, feature raised ceilings, and have been common in American homes since the early 1990s.
The New York Times called the great room "the McMansion's signature space. The concept of a great room hearkens back to the romanticized ideal of great halls and great chambers in medieval castles, which contained one large central room where everything happened. Developers of mid-range suburban homes in America tried to solve the problem of the "dead" living room and the split between the living and family rooms by "returning" to the idea of the great room.
The general concept is one relatively central room, the crossroads of the house to be used for all of the family functions traditionally split between living and family rooms. The dominant feature of the great room is the raised ceiling, higher than other parts of the house, typically two stories with arching ceilings often referred to in real estate jargon as "cathedral ceilings".
Different great rooms will combine different functions, e.g. some may incorporate a reading area, thus bringing the traditional study function into the scheme of the room, while others may forgo this particular function. Some great room designs incorporate the functions of the traditional dining room as well.
In the most general sense, great rooms are typically found on the lower level of American multi-story homes built in the second half of the 20th century. In many houses the great room will also adjoin the kitchen, often separated just by a counter instead of a full wall.