A touch key assembly is structured to operate with a cover having at least one touch key, which is defined by an optically transmissive region of the cover. A touch pad is coupled to the cover and is shaped to define at least one aperture which forms a light guide that is associated with the touch key. A light source is positioned relative to the bottom side of the touch pad, and is further positioned relative to the light guide to provide light to the touch key. The assembly may also include an optical waveguide positioned relative to the bottom side of the touch pad, the optical waveguide being structured to transmit light. A reflection element operatively associated with the bottom side of the optical waveguide may be used to enhance refection of the light. The touch key assembly may be implemented in a portable electronic device, such as a mobile terminal or a personal digital assistant (PDA).