A small-form-factor (SFF) pickup head with a holographic optical element (HOE) is fabricated. The system employs a finite-conjugate object lens to focus a light beam. A holographic optical element is used to simplify the optical configuration. It provides a better means of alignment of fabrication and reduces the size of system relative to reflective light route. Thermal analysis was utilized to prove that temperature of LD is under an acceptable range. The pickup head system based on discrete components and a flip chip bonder with highly accurate alignment was to integrate it. Focusing error signal (FES) of pickup head was measured and presented. The optical system is demonstrated and proved that it is a feasible system.