A flashlight and holder cooperate to automatically turn the flashlight on when the flashlight is removed from the holder and turn the flashlight off when the flashlight is returned to the holder. The flashlight includes a bottom cap with a magnetically actuated switch. The holder includes a magnet which cooperates with the switch to turn off the flashlight. The magnet also provides some degree of attraction for retaining the flashlight in the holder. The holder may be a stationary holder for holding a flashlight in a home or workplace, or may be a holster.
