Approximate expressions for the contribution from multiple scattering (MS) to lidar returns from cloud media, which take account of the extinction coefficient profile along the beam path are obtained. An iterative algorithm is proposed for correcting the available single scattering solution of the lidar equation for MS effects. An algorithm is described for interpreting lidar returns which yields the optical thickness τ and the extinction coefficient profiles for cloud layers of τ≤6 for a set of lidar returns corresponding to different receiver fields of view. The same detector scheme is shown to be capable of retrieving profiles of the integral parameters of the cloud particles size spectrum and the liquid water content of the cloud.