As demand for high-bandwidth data transmission continues to increase, future satellite constellations can leverage the benefits of free space optical communication, which provides significant advantages compared to traditional radio frequency systems. Despite the development of satellite laser communication terminals (LCTs) in recent years, one major challenge remains; coupling the incoming signal into an optical fiber. In addition, most terminals use intensity modulation to encode data, which is limited in its ability to reach high data rates. So-called coherent modulation schemes offer superior performance but are not widely implemented in satellite LCT’s yet. A system that avoids fiber coupling while using coherent modulation could simplify designs, reduce complexity, and improve performance. This thesis presents the design, implementation, and evaluation of such a coherent free space optical detection system. Differential Phase Shift Keying (DPSK) was chosen as the modulation scheme due to its balance of power efficiency and implementation simplicity, delivering performance comparable to other coherent schemes with a less complex receiver architecture. The system was implemented using bulk optics and tested in a laboratory environment. A Delay Line Interferometer (DLI) was used for DPSK demodulation. The system successfully achieved a data rate of 100 [Mbit/s], demonstrating the feasibility of DPSK-based coherent free space detection. Some performance limitations were identified, with DLI instability emerging as the most notable, which is primarily caused by the long length required for this data rate. This instability resulted in intermittent bit error rate values exceeding the required threshold. These findings show that DPSK demodulation using bulk optics is favored toward higher data rates, and thus shorter delay lines. Recommendations for future work would be to operate at a higher data rate, and implement active stabilization for operational systems.