A laser target assembly, which doubles as a pipe plug, has an outer sheath with a first end that fits within the end of a cut section of pipe, and a second, larger-diameter end that fits into the bell of an uncut section. A circular interior panel, made of tough plastic, is positioned in about the middle of the sheath perpendicular to its central axis. A lower half of the panel, which functions as the target, is opaque; the balance is transparent. A target scale, having evenly-spaced linear markings, is provided on the opaque portion of the panel. A bubble level, positioned within the larger-diameter end adjacent the panel, enables a pipe layer to position the target scale in a vertical orientation. Interior handles are used to adjust axial alignment of target assembly and remove the target assembly when it is installed within a bell.