Three-dimensional (3D) imaging of living organisms requires fine optical sectioning and high-speed image acquisition, which can be achieved by light sheet fluorescence microscopy (LSFM). However, orthogonal illumination and detection arms in the LSFM system make it bulky. Here, we propose and demonstrate the application of a volume holographic optical element (photopolymer-based volume holographic grating) for designing a compact LSFM system, called a volume holographic LSFM (VHLSFM). Using the VHLSFM, we performed in vivo imaging of Caenorhabditis elegans (C. elegans) and observed high-contrast optically sectioned fluorescence images of the oocytes and embryonic development in real time for 3D imaging.