Abstract: The holographic characteristics of water-resisting red-sensitive photopolymer holographic recording material was improved by using compound sensitizer, compound initiator and compound monomer. After improvement, energetic sensitivity of 0.02cm2/mJ and high diffraction efficiency of 83% were obtained. And the refractive index modulation is as high as 410-3, which implies that the photopolymer has the potential ability of high density holographic storage. Therefore, it is a kind of better holographic recording material. The new style holographic grating fabricated with the material has many merits: low loss, narrow channel width, high diffraction efficiency. According to the experiment results and theoretical analysis, this grating is suitable for wavelength division demultiplexer and other optical elements.