In the preferred embodiment of a panel connector system, the connectors are channel-shaped in cross section. Each of the connector's legs includes an inwardly extending lip, and the connector's base includes two inwardly extending studs. Each of the panels for the system includes a frame including upper and lower horizontal members and two vertical faces attached to the frame. The edges of the horizontal members include two orifices located near the vertical edges of the panel and adapted to engage a connector stud. When a connector is installed on two adjacent panels, one stud engages an orifice in the first panel and another stud engages an orifice in the second panel. When installed, the inwardly extending lips on the connector legs engage horizontally extending grooves in the vertical faces of the panel. The system includes connectors for connecting two aligned panels, two panels at a right angle, three panels, and four panels.