A method of fabricating a switchable liquid crystal polarization grating includes creating a degenerate planar anchoring condition on a surface of a reflective substrate. An alignment layer may be formed on a transmissive substrate and may be patterned to create a periodic alignment condition therein. The transmissive substrate including the patterned alignment layer thereon may be assembled adjacent to the surface of the reflective substrate including the degenerate planar anchoring condition thereon to define a gap therebetween. A liquid crystal layer is formed on the surface of the reflective substrate including the degenerate planar alignment condition. The liquid crystal layer may be formed in the gap directly on the alignment layer such that molecules of the liquid crystal layer are aligned based on the periodic alignment condition in the alignment layer. Related fabrication methods and polarization gratings are also discussed.