The objective of this work is to estimate the temperature dependent thermal properties of the APC-2 composite using a inverse parameter estimation technique. The present inverse method features the estimation of the thermal conductivity and the volumetric heat capacity, which are dependent on the temperature inside the composite. Furthermore, the thermal conductivity is directionally dependent because of the aniosotropy of the composite. An on-line temperature measurement system with a suitable method of heating is built. A composite slab is fabricated using thermoplastic prepreg for the investigation. The corresponding computer code for evaluating the thermal properties inversely using the temperature reading transmitted from the measurement system is developed. The parameterized form is used for the rapid and stable estimation. The modified Newtons method is adopted for the solution technique of the inverse analysis. The estimated results are compared with the measured data from a previous study for the verification.