An imaging reader for, and a method of, imaging targets, include a solid-state imager supported by a housing for capturing return light from a target over a field of view. An illumination light assembly performs both illumination and aiming functions. Illumination light is projected along an optical path through a passage in the housing to illuminate the target. The housing has boundary walls spaced along the optical path away from the imager and the illumination light assembly for clipping the illumination light projected through the passage to form on the target an aiming light distribution that visually indicates a periphery of the field of view to assist in positioning the target entirely within the field of view.