SUMMARYA method for fabrication of binary holograms with a laser punch is proposed. In the present method, the hologram pattern is first computed in a computer so that a given reconstruction image can be obtained. This hologram pattern is binarized by a newly proposed algorithm. Based on the binary hologram pattern, laser illumination and motion of the stage with a film attached are computer controlled. In this way, holes with a fixed diameter are punched into the film to form binary holograms. Further, in order to verify the methods effectiveness, it is confirmed that excellent reconstruction images can be obtained from the holograms fabricated by the proposed method. © 2001 Scripta Technica, Electron Comm Jpn Pt 2, 84(10): 1723, 2001