The present invention concerns a masonry wall panel assembly comprising a panel and a plurality of bricks. The panel is provided with a plurality of horizontally extending contiguous channels bounded by upper and lower protruding ribs, for fitting a row of bricks. Each channel is also fitted with a plurality of compressible retaining tabs positioned along the upper rib of each channel for retaining bricks inserted therein. The bricks are provided with at least one cavity and at least one compression area so that when a brick is inserted into a channel of the panel, the brick is positioned between the ribs such that the cavity of the brick faces one or more of the tabs located on the channel so that the tabs protrude into the cavity of the brick while at the same time compressing the compression area, thereby retaining the brick within the channel.