Photoelasticity is an effective method for evaluating the stress and its spatial variations within a stressed body. In the present study, a method to determine the stress distribution by means of phase shifting and a modified shear-difference is proposed. First, the orientation of the first principal stress and the retardation between the principal stresses are determined in the full-field through phase shifting. Then, through bicubic interpolation and derivation of a modified shear-difference method, the internal stress is calculated from the point with a free boundary along its normal direction. A method to reduce integration error in the shear difference scheme is proposed and compared to the existing methods; the integration error is reduced when using theoretical photoelastic parameters to calculate the stress component with the same points. Results show that when the value of Δx/Δy approaches one, the error is minimum, and although the interpolation error is inevitable, it has limited influence on the accuracy of the result. Finally, examples are presented for determining the stresses in a circular plate and ring subjected to diametric loading. Results show that the proposed approach provides a complete solution for determining the full-field stresses in photoelastic models.