A new setup for plasma diagnostics is presented that is based on real-time holographic interferometry. The hologram is used as a holographic optical element (HOE) that combines the properties of a hologram, of a lens, and of a grating simultaneously. The HOE is responsible for the formation of the interference pattern, and, in addition, acts as an imaging element and prevents most of the plasma radiation from reaching the interferogram detection system. The spectral and imaging properties of this HOE are calculated numerically, and this numeric procedure is tested experimentally. We applied the HOE-interferometry technique to the measurement of the electron density in a brightly radiating high-pressure xenon lamp. The principle of this experiment, two-wavelength interferometry, is described, and the results of the measurement are presented and discussed.