The present invention relates to an environmentally friendly beacon or light for illuminating a pole-mounted, halyard-hoisted flag, banner, pennant or the like that has a luminous source located in a cover, is mounted on top of the pole, and is capable of continuously directing a narrow beam of light toward the flag, banner, pennant or the like as the wind blows the same around the pole. The flagpole beacon of the present invention is designed to replace the knob of an existing pole and may be used on poles having either an internal halyard configuration or an external halyard configuration.