The results of a grating diffraction experiment in which an azo dye (methyl red, MR) and fullerene (C60) are doped at the same time to nematic liquid crystal (LC) host (E7). The change of refractive index, originated by photo-induced molecular reorientation, brings about an enhanced diffraction capability with respect to the other dye-doped LC systems containing only a single agent. MR component of the proposed system satisfies the absorption-based reorientation under the illumination of He-Cd laser while C60 constitutes the charge transfer complexes. Accessible diffraction efficiency is similar to 15% under optimum circumstances and analyzed results establishes a better reorientation lifetime by the common usage of both additives in our hybrid system in the sense that fullerene component improves efficiency. (C) 2004 Elsevier B.V. All rights reserved.