An illuminated ornament having an electronics assembly including a battery holder, a cap, a light emitting source and a control circuit is inserted through a hole axially into the ornament enclosure thereby locating the light source at a distance from the enclosure wall. The enclosure wall allow light to travel therethrough. A diffusing and reflecting cap which is preferably conical shaped converging towards a disk shaped end wall surrounds the light source and both allows light to travel therethrough and reflects light behind the light source to the enclosure wall. The battery holder is permanently attached to the assembly cap and the electronics assembly is removable from the enclosure in one piece. The assembly cap closes the hole. The differential pressure between the inside and outside of the enclosure is relieved preventing air and water entry through the assembly cap to enclosure interface.