We present an algorithm for simultaneous reconstruction of optical parameters, quantum yield, and lifetime in turbid media with embedded fluorescent inclusions. This algorithm is designed in the Fourier domain as an iterative solution of a system of differential equations of the Helmholtz type and does not involve full ill-conditioned matrix computations. The approach is based on allowing the unknown optical parameters, quantum yield, and lifetime to depend on the Fourier spectral parameter. The algorithm was applied to a time-gated experimental data set acquired by imaging a highly scattering cylindrical phantom concealing small fluorescent tubes. Relatively accurate reconstruction demonstrates the potential of the method.