A high-sensitivity frequency domain laser based ultrasonic system is presented which uses a low power, amplitude modulated continuous wave (cw) laser source for acoustic wave generation. The acoustic signals are detected using a path stabilized Michelson interferometer coupled to a rf lock-in amplifier. The modulation frequency of the generation laser is scanned over the bandwidth of interest, and transient acoustic signals are reconstructed from the frequency domain data. The effects of measurement frequency resolution, bandwidth, and time domain aliasing on the reconstructed transient response are discussed. Experimental results on thin plates, where diffuse acoustic wave fields lasting several hundred microseconds are seen as a result of multiple reflections off of sample boundaries, demonstrate that the time domain signal can be unambiguously reconstructed through appropriate selection of frequency resolution. Time domain reconstructions of acoustic signals over a bandwidth of 200MHz demonstrate the utility of the approach for acoustic microscopy; individual acoustic transients can be detected with extremely high signal to noise ratio and time gated for analysis.