A nightlight provides therapeutic effects on the human body and mind including promoting relaxation, sleep and wakefulness. The nightlight includes a housing, a light source, a central processor, one or more controls, and a power supply. The light source produces at least three illumination modes including a sleep readiness mode at about 40 lumens which preferably includes only light from the blue and yellow portions of the visible light spectrum, a sleep help mode providing substantially monochromatic light in the blue or green spectrum, and a wake-up mode providing substantially full spectrum light at approximately 1,600 lumens. The nightlight may be incorporated into a bedside alarm clock. The alarm function may be provided by illumination of one of the three nightlight's illumination modes, which is preferably the wake up mode which may illuminate slowly or substantially immediately to full brightness.