A thin holographic optical switch used in a liquid crystal display device contains opposing transparent substrates transparent electrodes between the substrates and a diffraction grating between the electrodes. The diffraction grating contains regions of transparent polymerized photopolymers and cholesteric liquid crystal micro-droplets. Refractive indexes of the photopolymers and liquid crystal are substantially the same when the electrodes have the same potential. The holographic optical switch transmits broadband LED light when the potential difference between the electrodes is zero and is polarization independent. The holographic optical switch diffracts broadband LED light when the potential difference between the electrodes is non-zero and is polarization independent.