In Interior design, light is the most important factor in deciding color, texture and illumination level which are the basic factors of spatial design. To apply rendering technologies on prediction of illuminating effect, it is important to understand and analyse the basic properties of the illumination models that are local illumination model and global illumination model. The illumination models in computer graphics express the factors which determine the surface color, texture and light distribution through the reflection. The purpose of this study is to propose the best way of shading algorithm in interior space provided by the computer, based on the experimental analysis that 5 shading methods are applied to the interior space. The results of this study were as followed. 1) Local illumination models that are Lambert shading, Ground shading and Phong shading are not suitable to the prediction of interior illumination effect. 2) Ray tracing that is global illumination model could be adopted to interior illumination effects. Ray tracing is a very versatile algorithm because of the large range of lighting effects it can model. 3) Neither radiality nor ray tracing offers a complete solution for simulating all interior illumination effects. 4) Radiosity excels at rendering diffuse-to-diffuse inter-reflections and ray tracing excels at rendering specular reflections. By merging both shading techniques, that offers the best of both. Using computer technologies to simulate lighting in preliminary design stage which will provide information for designers and occupants to determine the effect of using artificial light sources at each stage of their design process. Further study in illumination analysis, prediction of illumination effect, and lighting calculation is required as computer media expands.