A magnetic holder for letters appearing on a wall sign. A typical application would be for signs requiring halo glow lighting. With such a sign, the letter itself is unlit, and the wall is lit by soft lighting from behind the letter. Lighting could be accomplished with the use of a plurality of light emitting diodes (LED). The Present Invention comprises a mounting plate that is securely attached to the wall. The LED's, lighting circuitry, and magnets are securely fastened to the mounting plate. The letter is a hollow magnetic channel letter that is slightly larger than the mounting plate. The letter is positioned over the mounting plate, and is held in position by the magnets. The letter may be manually positioned on the plate for proper alignment.