A power tool having a handle extending along a longitudinal axis, wherein the handle is configured to house a motor. A ratchet head is connected to a first end of the handle. The ratchet head supports an output shaft having a drive square or bit that is driven by the motor. The ratchet wrench includes an application-targeted lighting system disposed around a periphery of the handle that illuminates the ratchet head and a workpiece below the output shaft. The application-targeted lighting system may include an array of Chip-On-Board LED lights. The application-targeted lighting system illuminates the workspace in applications where socket extenders and/or deep sockets are used with the ratchet wrench.