A recessed lighting system is disclosed that is capable of providing both direct and indirect lighting. The recessed lighting system may include first and second pluralities of light emitting diodes (LEDs) mounted on, respectively, first and second elongate track members. The first and second elongate track members may be spaced apart from each other by a distance, and a reflector may span at least a portion of that distance. The first and second pluralities of LEDs may be configured to emit light toward the reflector so that the reflector provides indirect lighting. A direct lighting fixture may be arranged between and slidably supported by the first and second elongate track members so that the direct lighting fixture is movable along the first and second elongate track members. Accordingly, the direct lighting fixture can be moved to a preferred position to spotlight an individual object or portion of the room.