Abstract: A decorative sound-absorbing modular building panel comprised of a core sheet of plywood or other ligno-cellulosic board material having a layer of textile carpeting material adhesively affixed to the respective major surfaces thereof and a peripheral frame formed of U-shaped metal channel members covering the exposed edges of the textile-overlaid core sheet and adhesively secured thereto. The panel is fabricated in a batch stacking process which eliminates the need for special jigs and presses and ensures that the resulting panel is flat and warp-free with the textile layers securely bonded thereto.