A polarization grating comprising a polarization sensitive photo-alignment layer (2) and a liquid crystal composition (3) arranged on said photo-alignment layer is provided. An alignment pattern, corresponding to the polarization pattern of a hologram, is recorded in the photo-alignment layer, and the liquid crystal composition is aligned on the photo-alignment layer. As the origin for the alignment of the liquid crystal composition is a polarization hologram recorded in a photo-alignment layer, an essentially defect-free pattern can be obtained with this approach.