A modified quantizing method is introduced to teach single layer learning algorithm, which is implemented optically. The proposed optical system consists of input masks, holographic diffraction grating. LCD and CCD camera. The 2 dimensional interconnections between input neurons and output neurons are realized using holographic phase grating, which is fabricated for equal intensity distribution of diffraction orders. The two gray levels of LCD act as binary weights for each interconnection. The weights are compensated according to the learning algorithm in which the amount of weights to be compensated is determined by comparing the output patterns with target patterns. The learning process is iterated until the predetermined conditions are satisfied. Optical experiments are performed for two learning rates, 0.5 and 0.9 and the experimental results show that the proposed system is useful for optical neural networks.