A lighting and communication system with a horn enclosure for recessed ceiling panel or wall mounting, including a speaker with a horn expansion area to direct sound waves from the speaker to a horn enclosure front, at least one light enclosure located within the horn enclosure, the light enclosure defining a light cavity which is separated from said horn expansion area, with a light source inside the light cavity. The light source can be an LED array, which is capable of displaying text, colors or patterns in response to a control system signal.