A system according to an exemplary aspect of the present disclosure includes, among other things, a seal having a compressible bulb to provide sealing between a vehicle flange and a moveable panel, and a channel formed in an exterior surface of the bulb. A light source is positioned within the channel to extend along a length of the seal. A method according to an exemplary aspect of the present disclosure includes, among other things, forming a seal to have a compressible bulb that has a channel formed in an exterior surface of the bulb, and installing a light cable within the channel to extend along a length of the seal.