A Novel hydro-soluble coating was synthesized by co-polymerization of four monomers:methyl 2-methacrylat(MMA),butyl acrylate(BA),methacrylic acid(MAA) and N-hydroxymethyl acrylamide(NMA).The ratios of monomers and emulsifier were investigated and optimized as well;the other factors influencing the diffraction efficiency on recording process of laser holography imaging were discussed.The diffraction efficiency was 6.8 % from the laser holography images recorded by the coating.