Magneto-optic diffraction by a periodic domain structure is reported. The periodic domain structure is generated in a flat ferromagnetic metal by coupling it magnetically to an array of magnetic elements. Both exchange and magnetostatic couplings are effective, creating a modulation of the magnetization, although the effect is somewhat larger for magnetostatic coupling, since it favours an antiparallel alignment of adjacent domains. Micromagnetic simulations agree qualitatively with the experimental findings.