A door mounted dispenser for a refrigerator includes rear and opposing side walls that collectively define a cavity, a release mechanism for dispensing ice and/or water and a light for illuminating the cavity. The cavity light can be operated in one of three distinct modes, i.e., in a first mode wherein the cavity light is continuously illuminated, in a second mode wherein the cavity light is illuminated only through activation of the release mechanism, and in a third mode wherein the cavity light is illuminated based upon a sensed level of ambient light present at or near the refrigerator. In the third mode, the cavity light is illuminated at a first level based upon ambient light and a second, higher level when the release mechanism is operated. The level of ambient light necessary to activate the cavity light can be set by a consumer through control panel inputs.