There is nothing to prohibit hanging family pictures on the wall as long as this is far from the possibility of breeding reverence and glorification and the content of the picture itself does not reveal any `awrahs or indecency.
Sheikh Ahmad Kutty, a senior lecturer and Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states: “It is not considered haram (forbidden) to hang family pictures on the wall; however, I should urge you against hanging them on the wall directly facing you in Prayer. For by hanging them in the direction of Prayer, your thoughts will likely be distracted; furthermore, it may inadvertently give the impression that we worship pictures. It is important for us Muslims to make ourselves distinct in our religious practices from those who associate partners with Allah in their worship. So never hang such pictures in the direction of your Prayer.
Still another point to consider: Never hang pictures of leaders and heroes, past or present, on your walls, for it may inadvertently lead to feelings of extreme reverence and hero worship, and this in turn may become an avenue leading to shirk. Such things are considered as avenues leading to that which is haram, and hence considered as forbidden. It is worth remembering that this was the main rationale for prohibiting carving images and statues in the first place. Since, however, such motives are entirely lacking in hanging family pictures, there is no reason to consider it as haram.”