Abstract: A veneer panel (10) has a relatively thin veneer layer (12) secured to a relatively thick supporting base (16) to form a generally rectangular veneer panel blank. The outer veneer layer (12) is then grooved in a predetermined pattern with longitudinally extending grooves (30) and transversely extending grooves (34) in the veneer layer forming veneer rows (30). At least one end of the veneer panel (10) is cut across its entire thickness to form projecting end portions (32B) of varying lengths corresponding to the veneer rows (30) and defining slotted spaces (36) between the projecting end portions (32B). A complementary projecting end portion (32B) of an adjacent panel is provided and the end portions (32B) on complementary panels are interfitted to form a staggered joint defined by a plurality of transverse grooves across the entire width of the panels similar to the remaining grooves (30, 34).