An improved interior wall construction that provides both sound attenuating and fire resistant properties. The improved wall construction eliminates the need for conventional vertical studs by including at least one rigid interior structural panel comprised of compressed straw. A compressed straw panel is situated in a substantially layered configuration with conventional non-woven insulation, at least one air space and a gypsum board sheet on each face. Connection between the compressed straw panel and at least one gypsum board sheet is comprised semi-flexible substantially Z-shaped resilient channel members. The Z-shaped channel members and compressed straw panel each being capable of partially attenuating sound energy passed therethrough.