A vehicular exterior door handle assembly includes a base portion that mounts at a door and a handle portion. The handle portion is movable relative to the base portion between a recessed position and an extended position. A light module is disposed between the base portion and an outer panel of the door at or near a cutout region of the outer panel of the door. With the handle portion in the recessed position, a light emitting element of the light module at least partially circumscribes the handle portion. With the handle portion in the extended position, the handle portion extends at least partially through the cutout region. With the handle portion in the extended position, the light emitting element emits light that passes through the cutout region of the outer panel of the door to illuminate the handle portion.