A compact multi-material cut-off tool includes a housing, and an arbor rotatably supported by the housing upon which a cutting disk is attachable for co-rotation therewith. A motor is coupled to the arbor to provide torque thereto. A controller is operable to selectively drive the motor in a first rotational direction and an opposite, second rotational direction. A first lighting element is coupled to a first portion of the housing, and a second lighting element is coupled to a second portion of the housing. One of the first lighting element and the second lighting element is configured to be activated by the controller in response to the motor being driven in the first rotational direction. The other of the first lighting element and the second lighting element is configured to be activated by the controller in response to the motor being driven in the second rotational direction.