Yes, we can obtain a diagonal matrix by multiplying two non diagonal matrix.
Consider the matrix multiplication below
![\left[\begin{array}{cc}a&b\\c&d\end{array}\right] \left[\begin{array}{cc}e&f\\g&h\end{array}\right] = \left[\begin{array}{cc}a e+b g&a f+b h\\c e+d g&c f+d h\end{array}\right]](https://tex.z-dn.net/?f=%20%20%5Cleft%5B%5Cbegin%7Barray%7D%7Bcc%7Da%26b%5C%5Cc%26d%5Cend%7Barray%7D%5Cright%5D%20%20%20%5Cleft%5B%5Cbegin%7Barray%7D%7Bcc%7De%26f%5C%5Cg%26h%5Cend%7Barray%7D%5Cright%5D%20%3D%20%20%5Cleft%5B%5Cbegin%7Barray%7D%7Bcc%7Da%20e%2Bb%20g%26a%20f%2Bb%20h%5C%5Cc%20e%2Bd%20g%26c%20f%2Bd%20h%5Cend%7Barray%7D%5Cright%5D%20)
For the product to be a diagonal matrix,
a f + b h = 0 ⇒ a f = -b h
and c e + d g = 0 ⇒ c e = -d g
Consider the following sets of values
![a=1, \ \ b=2, \ \ c=3, \ \ d = 4, \ \ e=\frac{1}{3}, \ \ f=-1, \ \ g=-\frac{1}{4}, \ \ h=\frac{1}{2}](https://tex.z-dn.net/?f=a%3D1%2C%20%5C%20%5C%20b%3D2%2C%20%5C%20%5C%20c%3D3%2C%20%5C%20%5C%20d%20%3D%204%2C%20%5C%20%5C%20e%3D%5Cfrac%7B1%7D%7B3%7D%2C%20%5C%20%5C%20f%3D-1%2C%20%5C%20%5C%20g%3D-%5Cfrac%7B1%7D%7B4%7D%2C%20%5C%20%5C%20h%3D%5Cfrac%7B1%7D%7B2%7D)
The the matrix product becomes:
![\left[\begin{array}{cc}1&2\\3&4\end{array}\right] \left[\begin{array}{cc}\frac{1}{3}&-1\\-\frac{1}{4}&\frac{1}{2}\end{array}\right] = \left[\begin{array}{cc}\frac{1}{3}-\frac{1}{2}&-1+1\\1-1&-3+2\end{array}\right]= \left[\begin{array}{cc}-\frac{1}{6}&0\\0&-1\end{array}\right]](https://tex.z-dn.net/?f=%20%5Cleft%5B%5Cbegin%7Barray%7D%7Bcc%7D1%262%5C%5C3%264%5Cend%7Barray%7D%5Cright%5D%20%5Cleft%5B%5Cbegin%7Barray%7D%7Bcc%7D%5Cfrac%7B1%7D%7B3%7D%26-1%5C%5C-%5Cfrac%7B1%7D%7B4%7D%26%5Cfrac%7B1%7D%7B2%7D%5Cend%7Barray%7D%5Cright%5D%20%3D%20%5Cleft%5B%5Cbegin%7Barray%7D%7Bcc%7D%5Cfrac%7B1%7D%7B3%7D-%5Cfrac%7B1%7D%7B2%7D%26-1%2B1%5C%5C1-1%26-3%2B2%5Cend%7Barray%7D%5Cright%5D%3D%20%5Cleft%5B%5Cbegin%7Barray%7D%7Bcc%7D-%5Cfrac%7B1%7D%7B6%7D%260%5C%5C0%26-1%5Cend%7Barray%7D%5Cright%5D)
Thus, as can be seen we can obtain a diagonal matrix that is a product of non diagonal matrices.