Novel diffractive optical elements (DOE) with multifunctionality in polarization or color are reviewed. We review three technological approaches for construction of such DOEs with multifunctionality in polarization: the two- substrate birefringent computer generated hologram (BCGH), the multiple order delay BCGH, and the form birefringent computer generated hologram approaches. We also discuss the accurate design of such DOEs enabled by our modeling tools based on rigorous coupled wave analysis. Microfabrication techniques developed for realization of these three types of polarization selective DOEs are described. The developed DOEs with multifunctionality in polarization or color are used to package a 3D optoelectronic VLSI chip, a transparent optical multistage interconnection network, and a wavelength division demultiplexer, providing mechanical and thermal stability, light efficiency, reduced volume, weight, and cost, and increased reliability.