An appealing property of optical diffractive structures from elastomeric materials is a possibility to regulate their optical patterns and consequently also their diffractive features with mechanical straining. We investigated the effect of strain on diffraction characteristics of holographic gratings recorded in a monodomain side-chain liquid crystalline elastomer. The strain was imposed either parallel or perpendicular to the initial alignment direction of the material. At temperatures far below the nematic-paranematic phase transition, straining along the initial alignment affects mainly the diffraction pattern, while the diffraction efficiency remains almost constant. In contrast, at temperatures close to the nematic-paranematic phase transition, the diffraction efficiency is also significantly affected. Straining in the direction perpendicular to the initial alignment strongly and diversely influences both the diffraction pattern and the diffraction efficiency. The difference between the two cases is attributed to shear-stripe domains, which form only during straining perpendicular to the initial alignment and cause optical diffraction that competes with the diffraction from the holographic grating structure.