What it means
You say this when life’s been dragging you through the mud for ages and, at last, you can see things easing up. It doesn’t mean the nightmare’s fully done and dusted yet. It just means the exit’s finally stopped playing hide-and-seek.
Usage examples
"Three months of job hunting and I was ready to quit, but I’ve got a second interview Friday. The light at the end of the tunnel."
"Two final exams to go, four nights of revision, and the cat has stopped knocking the highlighters off the desk. The light at the end of the tunnel, finally, even if it flickers."
"Dad finished the last round of chemo on Tuesday morning and the scan came back clear that afternoon. The light at the end of the tunnel, and the whole street brought casseroles before sunset."
"Bills, breakups, and that cursed boiler all in the same month, but I got paid today and the landlord finally called back. Light at the end of the tunnel."
"We've been grafting on this project since January and the final sign-off's tomorrow. Bit of light at the end of the tunnel at last."
Where it comes from
It comes from the literal sight of daylight appearing when you’re travelling through a dark tunnel, an image that caught on in English by the 19th century. From there it grew into a straight-up metaphor for hope after a grim stretch. In the US, it got extra mileage in 1960s political and military talk.