Children's panel and connector building set

According to a preferred embodiment of the present invention, a modular toy building kit is provided. The kit includes a plurality of building panels, each having a circumference with edges. A plurality of tabs are defined on each panel with one tab defined on each edge. The kit further includes a plurality of connectors, each connector having a length and having slots defined along the length. Each slot is sized to slidably receive and temporarily retain a tab of a building panel. Another embodiment of the present provides a self-contained toy panel and connector building set. The set includes a base having a rectangular support surface with four corners. The set includes at least four connectors, each having a height and four longitudinal sides with a longitudinal slot in each longitudinal side. Each of the connectors is positionable adjacent one of the support surface corners. The set further includes at least four panels, each panel having tabs, wherein each tab is sized to be received and selectively retained in one of the connector slots. The panels are engagable with the connectors to form walls to a storage compartment mounted on and enclosing the support surface on the base. The storage compartment is sized to store additional panels and connectors.