Holographic binary grating liquid crystal (LC) cells, in which the optical anisotropy was rectangularly modulated even as the grating was fabricated using holographic exposure, were fabricated by one-step polarization holographic exposure of an empty glass cell, the interior of which was coated with a photocrosslinkable polymer LC (PCLC). The present study is of great significance in that three types of holographic binary grating LC cells containing twisted alignments can be fabricated by simultaneous exposure of two PCLC substrates to the UV interference beams, which are sinusoidally modulated. The polarization conversion properties of the diffracted beams are explained well by theoretical analysis based on Jones calculus.