Interest in materials for optical storage effect has been intense in the last years. In this paper we report the observation of permanent gratings in a new liquid crystalline side-chain polymer containing a mononuclear cyclopalladated azobenzene complex. Two-beam coupling experiments indicate photorefractive properties. A gain of 900 cm−1, without applied electric field, was determined by two beam coupling measurements. A significant feature of this high gain material is that this effect occurs in an easily processable pure compound.