An illuminated alternator for automotive and other motorized vehicles includes a plurality of illumination devices, such as light emitting diodes, bulbs or lasers. The illumination devices are positioned within the alternator. When the illumination devices are activated, light from the illumination devices is reflected by surfaces of the alternator frame and exits the alternator frame through one or more vents, thus providing a glowing or illumination effect that radiates from within the alternator. Different numbers and colors of illumination devices may be used, including illumination devices that emit red, yellow, green and blue light. Illumination devices can also be activated in different sequences and patterns, such as periodically, intermittently, and randomly. An alternator may have illumination devices that are the same or different colors. Illumination devices that are simultaneously active may emit colors that are mixed so that the illumination effect is a color that is different than the colors of the illumination devices.