This paper uses Monte Carlo simulations to investigate the interaction of shortwave infrared (SWIR) light with vascular tissue as a step toward the development of a non-invasive optical sensor for measuring blood lactate in humans. The primary focus of this work was to determine the optimal source-detector separation, penetration depth of light at SWIR wavelengths in tissue, and the optimal light power required for reliable detection of lactate. The investigation also focused on determining the non-linear variations in absorbance of lactate at a few select SWIR wavelengths. SWIR photons only penetrated 1.3 mm and did not travel beyond the hypodermal fat layer. The maximum output power was only 2.51% of the input power, demonstrating the need for a highly sensitive detection system. Simulations optimized a source-detector separation of 1 mm at 1684 nm for accurate measurement of lactate in blood.