A frequency domain spectroscopic system was constructed to investigate the optical properties of multiple scattering media. The alternating current (AC) and phase lag components of backscattered light were measured by using the heterodyne detection method. Absorption and transport scattering coefficients were computed from the values based on diffusion theory. Predictions showed excellent matches in comparison with actual values of absorption and scattering. Predictable ranges of the optical coefficients were analyzed in terms of the distance between light source and detector, and modulation frequencies. A proposed compact experimental set-up using laser diodes can be utilized to estimate non-invasively the optical properties of multiple scattering media such as biological tissues.