Erasable polarization holographic grating was recorded with two-wave mixing in PCN which was side-chain liquid crystalline polymalonic esters containing two symmetrical 4-cyanoazobenzene as photoresponsive groups. The diffraction efficiency of recorded grating was measured and the characteristics of recording, decay in a dark room and erasing by circularly polarized light were investigated. As the results, birefringence, $Delta$n of PCN was measured $6.5{ imes}10^{-2}$, which was 0~100 times higher than those of crystals such as Fe:$LiNbO_3$, Ce:$BaTiO_3$ crystals. Dark decay rates was $4.3{ imes}10^{-5}$ %/hour, which showed the possibility of application as data storage media.