260-GHz radiation is used for a quasi-optical electron spin resonance (ESR) spectrometer which features both field and frequency modulation. Free space propagation is used to implement Martin-Puplett interferometry with quasi-optical isolation, mirror beam focusing, and electronic polarization control. Computer-aided design and polarization pathway simulation lead to the design of a compact interferometer, featuring lateral dimensions less than a foot and high mechanical stability, with all components rated for power levels of several Watts suitable for gyrotron radiation. Benchmark results were obtained with ESR standards (BDPA, DPPH) using field modulation. Original high-field ESR of 4 f electrons in Sm3+-doped Ceria was detected using frequency modulation. Distinct combinations of field and modulation frequency reach a signal-to-noise ratio of 35 dB in spectra of BDPA, corresponding to a detection limit of about 10(14) spins. (C) 2016 Author(s).