A compact recessed lighting system is provided. The lighting system includes a light source module and a driver separately coupled to a unified casting. The driver is formed in a “donut” shape such that the light source module may be coupled to the casting in the center hole formed by the driver. The lighting system may also include a reflector that surrounds the light source module and shields the driver from exposure to the area surrounding the lighting system. Based on this configuration, the lighting system provides a compact design that allows the combined casting, light source module, driver, and reflector to be installed in a standard junction box instead of a “can” housing structure to reduce the overall cost of the lighting system while still complying with all building and safety codes/regulations. This configuration also allows the lighting system to achieve a UL fire-rating of at least two hours.