A portable bar code scanner includes a base member and a overhanging scanning housing secured to the base member. A laser power supply mounted in the housing outputs a laser beam along a first light path directed to a compact optical system in the housing which reflects the laser beam along a second light path which intersects the first light path at approximately ninety degress to scan a coded label positioned below the scaning housing. A collection lens mounted in the housing collects and directs the reflected light from the coded label to a detector which generates electrical signals for transmission over a cable to a processor.