I don’t know about smallest.
Queen Mary’s dollhouse had some really tiny books on its shelves. Real books with real stories in them.
Walt Disney at one stage introduced “the only book ever written by a mouse”, which was quite small.
Possibly the smallest true book I have at home is this one. It’s a fully illustrated prayer book possibly published 1954. 160 pages. Not all that small, 9.5 * 6.5 * 1 cm.

Wikipedia’s page on Miniature book
“Many books have claim to the title of smallest book in the world at the time of their publication.”
1674: Bloem-Hofje (Amsterdam: Benedict Schmidt, 1674). For more than two centuries, this remained the smallest book printed with moveable type.
1878: Dante, Divina Commedia (Milan: Gnocchi, 1878). 500 pages. 5 cm x 3.5 cm. Typeset and printed by the Salmin Brothers of Padua.
1897: Galileo Galilei. Galileo a Madama Cristina di Lorena (Padua: dei Fratelli Salmin, 1897). 150 pages. This remains to this day the smallest book set from movable type.
1900: Edward Fitzgerald, trans. The Rubaiyat of Omar Khayyam (Cleveland: Charles H. Meigs, 1900).
1932: The Rose Garden of Omar Khayyam.
2001: New Testament (King James version, Cambridge: M.I.T, 2001). 5 × 5 mm.
2002: Anton Chekhov, Chameleon (Omsk, Siberia: Anatoly Konenko, 1996) 0.9 mm x 0.9 mm.
2006: ABC books in Russian and Roman characters (Omsk, Siberia: Anatoly Konenko, 1996). 0.8 mm x 0.8 mm
2007: Teeny Ted from Turnip Town (category: world’s smallest reproduction of a printed book. Single sheet, not codex format.) 0.07 × 0.10 mm
2016: Vladimir Aniskin, (Russia: Vladimir Aniskin, 2016). “The micro-book consists of several pages, the precise size of the pages is 70 by 90 microns.
I’ve read many books on microfiche.