The impact on digital communications performance from non-truetime-delay beam steering by a holographic optical element (HOE) is investigated. Free-space data transmission experiments were performed using an HOE with a 5 mm diameter and 338 diffraction angle at the data rate of 10 Gbit/s with return-to-zero and non-return-to-zero formats. For this diffraction case, a small penalty of 0.7 dB at 10 29 bit error rate is observed for both formats. This penalty is smaller than the optical loss but would be expected to increase for larger diameters and data rates.Introduction: Developments in volume holographic optical elements (HOEs) fabricated using photo-thermo-refractive glass [1] have opened applications of HOEs in light-weight, agile, large-angle, largeaperture beam steering [2]. However, since all Bragg-based diffraction devices exhibit non-true-time delay (NTTD), a beam diffracted by an HOE experiences a temporal delay that varies transversely across the beam in the plane of diffraction. These distortions could be significant in free-space-optical (FSO) communication applications that require high data rates and large apertures, and rely on diffraction-based, beam steering techniques.An HOE exhibits a sinusoidally modulated refractive index as depicted in Fig. 1. This modulation, represented by a grating vector, leads to diffraction in the y -z plane. The diffraction process involves a wave incident to the interface at angle u 1 satisfying the Bragg condition. The transmissive type HOE, more practical for beam steering, is depicted in Fig. 1 and was used in our experiments. This HOE is made of photo-thermo-refractive glass, with grating parameters described by a slant angle (f) of 908, a thickness (L) of 1.16 mm and a grating wavelength (L) of 1420 nm. The refractive index modulation is 640 ppm, and the diffraction efficiency at the Bragg angle of u 1 ¼ u 3 ¼ 338 is greater than 96% for a 5 mm collimated beam diameter.