Abstract: A raised wall panel which includes a frame, a raised panel and a molding positioned between the two. The frame, having four frame members, is arranged in a "picture frame" configuration and attached to plywood fixed to a wall structure. The frame members are constructed of a base material, such as composition board or inexpensive plywood, which is covered by a decorative wood veneer. The raised panel is positioned within the frame using a spacing tool to ensure that the open area between the frame and the raised panel is uniform and the raised panel is attached to the plywood. The raised panel is also constructed of a base material which is covered by a decorative wood veneer. The molding has a built-up frame portion having a frame lip and a built-up panel portion having a panel lip. The molding is then positioned between the frame and the panel section such that the frame lip overlaps the frame member and the panel lip overlaps panel section.