A decorative panel is manufactured for installation on a surface of a room. The decorative panel is formed from a material that can be shaped having a decorative portion, two female mounting portions and two male portions. The female portions have punched holes for fastening the panels directly to a surface, and the male portions of an adjacent panel are positioned into the female portions to partially hold the adjacent panel and to obscure from view the punched holes and fastening hardware. The panel design and installation method allows the decorative panels to be attached directly to a building material such as sheet rock without any intervening supporting structure.