This work focuses on experimentally demonstrating the modification in diffusion kinetics, formation of holographic polymer dispersed liquid crystal gratings and an improvement in its electro optic response by doping them with multi-walled carbon nanotubes. Results indicate a faster rise and fall times which is attributed to the reduction in size of the liquid crystal droplets formed and a reduction in switching voltage due to change in dielectric properties of the medium as manifested by a rise in capacitance. Real time diffraction efficiency measurements reveal a time delay in the appearance of the diffracted order due to non-participation of the nanotube in the polymerization induced phase separation process. An analysis of this effect is presented based on the Stoke-Einstein's diffusion equation incorporating shape anisotropy of the nanotubes.