A modular wall includes a plurality of inter-connectable and interchangeable wall modules. At least one of the wall modules includes a recessed, extendable piece of furniture, such as a bed, desk, table, work surface or chair. When in a closed configuration, the furniture folds into or otherwise resides within a recessed pocket in the modular wall. When in the closed configuration, the outer surface of the furniture forms an exterior surface of the wall module; thereby, concealing the furniture seamlessly into the modular wall. The exterior surface can comprise one or more exterior interchangeable tiles.