In this study, we synthesised poly(3-octylpyrrole-co-squaric acid) (PSQ3), a polysquaraine, through the reaction of 3-octylpyrrole and squaric acid, and then co-doped it with phenanthrenequinone (PQ) into poly(methyl methacrylate) (PMMA) to improve the holographic data storage characteristics of the photopolymer. The photopolymers co-doped with relatively small amounts of PSQ3 exhibited greatly improved holographic recording characteristics, including superior diffraction efficiency and dynamic range (M#). Among the samples co-doped with PQ and PSQ3, the maximum diffraction efficiency reached 54.8% (cf. 9.0% for PMMA/PQ) without further downgrade and the value of M# reached 1.05 (cf. 0.46 for PMMA/PQ). Therefore, the holographic data storage characteristics of the photopolymer PMMA/PQ were improved through codoping with PSQ3.