The polarization-sensitive material is fabricated with nematic liquid crystal doped with 0.2% (mass fraction) of azobenzene side-chain liquid-crystalline polymer, in which polarization holographic grating with circular anisotropy was recorded by two orthogonal circular-polarization light beams. It found that when the probe beam is linearly polarized, the ±1 order diffraction beams are also linearly polarized with polarization direction perpendular to that of the probe light and the zero-order diffraction light. The experimental results are in good agreement with the theoretical expectation based on Jones matrix. The diffraction orders can be controlled by the applied electric filed, and there is 90°phase difference between the ±1 orders diffraction beams. When the frequency is 6.05 Hz and the applied voltage is 2.2 V, the extreme value of diffraction orders oscillates.