You've heard about keeping your baby sleeping in a bright space to make sure they know it's daytime sleep vs night sleep right? Well scrap that right out of your mind. That is a horrible idea.
Light levels help to regulate your child's sleep hormones. When it's dark they are able to get into a nice deep, restorative sleep. So how do you decorate their sleeping environment? Overhead lights or standalone fixtures? Do you use a nightlight? Will they become addicted to the darkness for sleep?
Overhead lights are fine for a play time. If possible, have them installed on a dimmer switch so that you can adjust the light levels as bedtime approaches. It can make a big difference in letting your child know that a sleepy time is approaching.
Standalone lights work great for getting ready for bed and reading nooks. The one pictured is from my office, but we use that corner for reading at night before bed. It's the Oliver lamp from Brightech. I particularly love this light because it's super adjustable and it turns on by a foot pedal. Which is great if you're carrying a baby or are mid-feeding session and trying to turn on a light.
The lowdown on nightlights... if you can not use one that would be great. Splurge a little for a good one with a sensor, if you need to use one, and place it behind a piece of furniture so that it just gives off a soft glow. You don't want it to illuminate the whole room or be right in your child's face if they wake up at night.

Will your child be addicted to the dark for going to sleep? Nope. They might sleep not as great in brighter space because again, their hormone levels for sleep are adjusted by the light levels. So keep it as dark as possible for sleep times (day and night).
Bottom Line: Darkness is the best for sleep times. Keep an eye on light levels during the 30min before bed to get them and their hormones ready for bed.
Looking for some great (and affordable!) lights for your house? Visit the Brightech website.