We report the results of a grating diffraction experiment in which a blue anthraquinone dye, Disperse blue 14, is doped to nematic liquid crystal host and the sample is employed as a nonlinear media. The change of refractive index, caused by the photoinduced molecular reorientation, brings about the promising grating diffraction capability of a novel liquid crystal system. This system contains an anthraquinone dye in the absorbance band of red He-Ne laser, which is used as a pumping source. Accessible diffraction efficiency is 20% under optimum circumstances and analyzed results are in consistency with the expectations reinforced by the literature information of the other resembling liquid crystal systems. (C) 2002 Elsevier Science B.V. All rights reserved.