A decorative wall system is provided that includes a number of panels that can be secured to an underlying wall and to one another in an overlapping configuration to provide a multi-layer, three-dimensional appearance to the wall. In one embodiment of the wall system, the system includes individual panels that include a decorative front surface and a rear surface. The rear surface includes undercuts along each side of the rear surface that can be positioned over the side edges of the front surface of an adjacent wall panel. The panels may each include an adhesive layer including compressible strings therein that assist the adhesive in holding the panel on a surface by forming a vacuum between the panel and the surface to which the panel is attached.