Patients with diabetic retinopathy (DR) may experience a reduction in retinal oxygen saturation (SO2). Close monitoring with a fundus ophthalmoscope can help in the prediction of the progression of disease. In this paper we present a noninvasive instrument based on structured illumination aimed at measuring the retina optical properties including oxygen saturation. The instrument uses two wavelngths one in the NIR and one visible, a fast acquisition camera, and a splitter system that allows for contemporaneous collection of images at two different wavelengths. This scheme greatly reduces eye movement artifacts. Structured illumination was achieved in two different ways, firstly several binary illumination masks fabricated using laser micro-machining were used, a near-sinusoidal projection pattern is ultimately achieved at the image plane by appropriate positioning of the binary masks. Secondarily a sinusoidal pattern printed on a thin plastic sheet was positioned at image plane of a fundus ophthalmoscope. The system was calibrated using optical phantoms of known optical properties as well as an eye phantom that included a 150μm capillary vessel containing different concentrations of oxygenated and deoxygenated hemoglobin.