The present invention provides a sewing machine for positioning a line of stitches a predetermined distance from an edge of a workpiece. The edge tracing sewing machine includes a machine body with a reciprocable needle mounted therein. The needle is reciprocated between an upward and a downward position at which it pierces a moving workpiece, passing a thread therethrough. The edge tracing sewing machine also includes a plurality of illuminable units that communicate stitch positioning to a machine operator, allowing the operator to manually adjust the lateral position of the workpiece, maintaining the stitch positioning within a predetermined tolerance from specifications.