The smallest stars are the tiny red dwarfs.The smallest known red star for now is the OGLE-TR-122b.

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The smallest known star right now is OGLE-TR-122b, a red dwarf star that's part of a binary stellar system. This red dwarf the smallest star to ever have its radius accurately measured; 0.12 solar radii. This works out to be 167,000 km. That's only 20% larger than Jupiter. You might be surprised to know that OGLE-TR-122b has 100 times the mass of Jupiter, but it's only a little larger.
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source: http://www.universetoday.com/guide-to-space/stars/what-is-the-smallest-star/
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