This invention provides an aimer assembly for a vision system that is coaxial (on-axis) with the camera optical axis, thus providing an aligned aim point at a wide range of working distances. The aimer includes a projecting light element located aside the camera optical axis. The beam and received light from the imaged (illuminated) scene are selectively reflected or transmitted through a dichoric mirror assembly in a manner that permits the beam to be aligned with the optical axis and projected to the scene while only light from the scene is received by the sensor. The aimer beam and illuminator employ differing light wavelengths. In a further embodiment, an internal illuminator includes a plurality of light sources below the camera optical axis. Some of the light sources are covered by a prismatic structure for close distance, and other light sources are collimated, projecting over a longer distance.