We propose a formalism to incorporate boundary conditions in a Neumann-seriesbased radiative transport equation. The formalism accurately models the reflection of photons at the tissue-external medium interface using Fresnel’s equations. The formalism was used to develop a gradient descent-based image reconstruction technique. The proposed methods were implemented for 3D diffuse optical imaging. In computational studies, it was observed that the average root-mean-square error (RMSE) for the output images and the estimated absorption coefficients reduced by 38% and 84%, respectively, when the reflection boundary conditions were incorporated. These results demonstrate the importance of incorporating boundary conditions that model the reflection of photons at the tissue-external medium interface.