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://img.qammunity.org/2018/formulas/mathematics/high-school/99yrvp57m26jvdlpwxsbepz8tvtp2jwpqp.png)
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

The the matrix product becomes:
![\left[\begin{array}{cc}1&2\\3&4\end{array}\right] \left[\begin{array}{cc}(1)/(3)&-1\\-(1)/(4)&(1)/(2)\end{array}\right] = \left[\begin{array}{cc}(1)/(3)-(1)/(2)&-1+1\\1-1&-3+2\end{array}\right]= \left[\begin{array}{cc}-(1)/(6)&0\\0&-1\end{array}\right]](https://img.qammunity.org/2018/formulas/mathematics/high-school/uv3wk5esgnimac46glttymwlstpjb2arbd.png)
Thus, as can be seen we can obtain a diagonal matrix that is a product of non diagonal matrices.