A novel photochromic diarylethene, 1-(2-ethyl-benzothiophen-3-yl)-2-(2-methyl-5-(2-cyanophenyl)thien-3-yl)perfluorocyclopentene(1o) was synthesized, and its photochromic and fluorescent properties were investigated. This compound exhibited reversible photochromism, changing from colorless to purle after irradiation with UV light both in solution and in poly-methyl methacrylate (PMMA) amorphous film. Also, it exhibited remarkable fluorescence switching in the solid state. When we used diarylethene 1c/PMMA film as recording medium, rewritable holographic optical storage was performed successfully. The results demonstrated that the diarylethene compound had attractive properties for polarization holographic optical recording, such as high photosensitivity, high spatial resolution, excellent fatigue-resistance.