A new wavelength demultiplexing scheme using holographic volume phase grating formed in photopolymer is proposed and demonstrated. Through the analysis and experiments of the design parameters such as wavelength selectivity, operating spectral range, spatial channel distance and spatial intensity distribution of each channel, we proved that the proposed demultiplexing scheme is promising for wavelength division multiplexing (WDM). From the experimental results, the 3 dB bandwidth of 0.21nm and the crosstalk level of 26 dB for a 0.8 nm channel spacing are observed.