A wall panel system and method of installation and use are provided, in which wall panels are suspended from trolleys along a track system. The trolleys include guide devices that interact with diverters coupled to the tracks to allow the trolley to be directed as desired at intersections of the tracks, and to follow a predetermined path along the track system. The wall panel system is configurable to allow the wall panels to be aligned serially, such as for dividing the space within a room, or may be stacked, such as suitable for compact storage.