We propose a unique optical system for measuring the retardation of birefringent films using a pair of liquid crystal (LC) gratings; that is, the examined birefringent films are inserted between two LC gratings. Because the LC grating functions as a polarization beam splitter for circularly polarized light, the proposed system is optically equivalent to the measurement system using a pair of two circular polarizers. First, the polarization splitting performance of the LC grating is discussed. It is found that a sufficiently high voltage (such that the retardation is less than a half wavelength) has to be applied for the almost pure circularly polarized diffracted light. Next, the measurement of the retardation of a homogeneous LC cell as an examined birefringent film was demonstrated using the proposed method. The proposed method is revealed to have the same measurement performance as that of the conventional method using a pair of linear polarizers and has an advantage that there is no need for the optic axis of the test birefringent specimen to be set at a specific angle.