A compact PAR lamp (10) has a hollow body (12) arrayed along a longitudinal axis (14) and has an open end (16) and a substantially closed neck end (18) and containing a light source capsule (20) within the hollow body (12) and coaxial with the longitudinal axis (14). The light source capsule (20) has electrical lead-ins (22, 24) that extend therefrom and exit via the neck end (18). A first parabolic reflector (26) is formed within the body (12) and has a wide portion (28) adjacent the open end (16) and a narrow portion (30) spaced therefrom along the longitudinal axis (14). A second reflector (32) is formed within the body (12) and extends from the narrow portion (30) into the neck end (18). A lens (34) closes the open (16), and a base (36) is attached to the closed neck end (18). In an alternate version the light source (20) comprises an arc discharge vessel (44) containing electrodes (46, 48) having termini (46', 48') defining an arc gap (50) therebetween and the focal points of the second reflector (when the second reflector is ellipsoidal) correspond with the termini (46', 48').