A lighting system for an electric fireplace, and a fireplace assembly including such system, may include a plurality of logs arranged in different orientations and in different rows. Some of the logs may include a substantially planar surface facing forwards. A front projector may project a lighting effect onto the logs, including the substantially planar surfaces, and a rear projector may project a lighting effect onto a non-transparent screen positioned behind the plurality of logs. The lighting system desirably provides a realistic three-dimensional flame effect in conjunction with a log set having a natural, split-log appearance. Other features may be included to enhance the lighting system, including internal lights in the logs and in an ember bed, as well as coloration of the logs to enhance the lighting effects and the natural appearance of the logs.