Polarization holography is the coherent interference of the beams that can have the different polarized states. The early-stage theory of polarization holography is based on Jones matrix, where the paraxial approximation is assumed, while the theory of polarization holography represented by dielectric tensor can describe the case with a large crossing angle. And it also depicts the relationship between diffraction light and interference light. During the research people find some extraordinary phenomenon, such as null reconstruction and inverse polarizing effect. But there is a disadvantage in this new polarization holography theory, where only under a peculiar circumstance can we get a faithful reconstruction. The circumstance can be expressed as “A+B=0”, where A and B refer to the coefficients for intensity and polarization holograms respectively. In this research, we calculate the formula of diffraction light’s polarization, and extract the A+B factor in it. Then we establish a series of equations which can let the diffraction light faithfully reconstruct, no matter what value of A plus B is. From the result, we can use an artificial reference beam which is corresponding to the signal beam to generate the hologram. Under this condition, the polarization of the diffraction light is similar to the signal. For simplification, we only discuss the signal wave with circular polarization and experimentally verify the result.