In this paper we provide a complete formulation of scattered wave energy propagation in a random isotropic scattering medium. First, we formulate the scattered wave energy equation by extending the stationary energy transport theory studied by Wu (1985) to the time dependent case. The iterative solution of this equation gives us a general expression of temporal variation of scattered energy density at arbitrary source and received locations as a Neumann series expansion characterized by powers of the scattering coefficient. The first term of this series leads to the first-order scattering formula obtained by Sato (1977). For the source and received coincident case, our solution gives the corrected version of high-order formulas obtained by Gao et al. (1983b). Solving the scattered wave energy equation using a Fourier transform technique, we obtain a compact integral solution for the temporal decay of scattered wave energy which includes all multiple scattering contributions and can be easily computed numerically. Examples of this solution are presented and compared with that of the single scattering, energy flux, and diffusion models. We then discuss the energy conservation for our system by starting with our fundamental scattered wave energy equation and then demonstrating that our formulas satisfy the energy conservation when the contributions from all orders of scattering are summed up. We also generalize our scattered wave energy equations to the case of nonuniformly distributed isotropic scattering and absorption coefficients. To solve these equations, feasible numerical procedures, such as a Monte Carlo simulation scheme, are suggested. Our Monte Carlo approach to solve the wave energy equation is different from previous works (Gusev and Abubakirov, 1987; Hoshiba, 1990) based on the ray theoretical approach. ¿1991 American Geophysical Union