Photolithography with visible light at λ = 405 nm utilizing the concept of nonlinear saturable absorption effect where the size of the spot is diminished to the nanometer scale as proposed by several researchers is an alluring proposition for cost-effective projection lithography. Costly conventional condenser lenses can be replaced by monochromatic aberration-free and cost-effective volume phase holographic lenses for visible light photolithography with enhanced resolution utilizing the concept of off-axis illumination. However, the diffraction efficiency of holographic lenses depends on the wavelength of illuminating light and the angle of illumination. Angular and spectral characteristics of volume phase holograms can be controlled by optimizing processing parameters. The results on the theoretical optimization of three important processing parameters, namely fringe spacing ( ∧ ), thickness of the film ( d ), and refractive index modulation ( Δ n ) in the light of coupled wave theory for recording holographic lenses of high diffraction efficiency at λ = 405 nm are presented. It is pointed out that a properly designed single holographic lens can be used for off-axis illumination of a photomask with a parallel beam of light, whereas a system of two identical holographic lenses cemented together has to be used to realize a condenser lens similar to a converging lens.