A thin brick panel assembly having improved water drainage and integral brick retention. A substratum includes horizontal rows of dovetail-shaped projections with interruptions therein. Mortar ties having a flat plate portion, a substratum engagement extension, and mortar engagement extension are fastened to the substratum such that the mortar engagement extensions align with the interruptions in the projections. Bricks are snap-fit to the substratum over the mortar ties and between the projections. The bricks crush portions of the dovetail-shaped projections and lie flat against the mortar ties. Mortar is applied between the bricks and flows through apertures in the mortar engagement extensions of the mortar ties to interlock the mortar ties, the substratum and the bricks.