malerisch
picturesque
So beautiful, idyllic, or charming that it looks like a painting.
Wir machten Urlaub in einem malerischen Fischerdorf an der Küste.
We went on vacation in a picturesque fishing village on the coast.

picturesque / painterly
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picturesque
So beautiful, idyllic, or charming that it looks like a painting.
Wir machten Urlaub in einem malerischen Fischerdorf an der Küste.
We went on vacation in a picturesque fishing village on the coast.

The adjective 'malerisch' (picturesque/painterly) is derived from 'der Maler' (the painter). This connection explains both meanings: something is either beautiful as if painted by a painter, or it relates to the painter's art itself.
Die Küste hier ist wirklich malerisch.
The coast here is truly picturesque.
The noun that 'malerisch' describes reveals the meaning. If it describes a place (village, landscape, alley), it means 'idyllisch' (idyllic/picturesque). If it describes an ability or a work (talent, technique, depiction), it relates to art.
Wir saßen in einem Café an einem malerischen Platz.
We sat in a café on a picturesque square.
In the meaning 'idyllisch' (idyllic/picturesque), 'malerisch' almost always describes places. Typical nouns are 'Landschaft' (landscape), 'Dorf' (village), 'Altstadt' (old town), 'Gasse' (alley), or 'Kulisse' (backdrop).
Die Wanderung führte uns durch eine malerische Landschaft.
The hike led us through a picturesque landscape.
beautiful / nice
'schön' and 'malerisch' can both describe something that looks good. 'schön' is general and fits many things, for example people, rooms, clothing, or landscapes. 'malerisch' is more specific: it mainly describes places or landscapes that seem especially charming, almost like in a picture. That is why 'malerisch' sounds more natural for a village, a lake, or an old alley than for everyday objects.

Das kleine Dorf am Fluss wirkt im Abendlicht malerisch.
The small village by the river looks picturesque in the evening light.
Anna hat für die Feier ein schönes Kleid gekauft.
Anna bought a beautiful dress for the celebration.