Abstract: A decorative panel assembly wherein a valance board receives and maintains a plurality of tracks, the tracks receiving rollers connected to decorative panels. The panels and valance board are provided with edge clamps, acting as mouldings, or used for securing decorative coverings thereto. A first source of illumination is provided in the valance board and in front of the panels to cast light upon the same. A second light source is vertically positioned behind the end panels for creating an indirect lighting or ghosting effect. A spring-biased curtain rod holder may be maintained within the valance board and behind the panels, if so desired.