An illuminated dispenser assembly for a consumer appliance panel includes a dispenser recess area located in the panel. The dispenser recess area is defined by walls including a bottom wall, a back wall and a top wall. The bottom wall has a top surface. A dispenser is located in the panel. The dispenser has an outlet extending through one of the walls of the dispenser recess area to dispense a substance from an interior of the consumer appliance to the dispenser recess via the outlet. A lighting element includes a light source located below the top surface of the bottom wall for illuminating a target area in the bottom wall of the dispenser recess. The target area is located relative to the dispenser outlet so as to identify a location for placement of a receptacle for receiving the substance from the dispenser. A related refrigeration appliance incorporating such an illuminated dispensing target is also disclosed.