Some embodiments of the present invention provide a combination lighting and ventilating apparatus for installation in a structure. The apparatus can include a main housing having a first aperture that defines a ventilating inlet and a lighting outlet, a lamp housing recessed within the main housing, having first and second apertures spaced a distance from one another, and having a portion that extends outside of the main housing, and a lamp recessed within the lamp housing and the main housing. In some embodiments, the apparatus further includes a fan positioned to draw air into and through the first aperture of the lamp housing, around the lamp, and through the second aperture of the lamp housing. In another aspect of the invention, a method of lighting and ventilating a room using a combination lighting and ventilating apparatus is provided.