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A new computer-generated hologram (CGH) based on phase retrieval algorithm and nonlinear amplitude limiting is proposed to significantly improve the diffraction efficiency than general nonlinear amplitude limiting method. The original image is encoded into a pure phase by phase retrieval algorithm, and using parallel wave as the carrier. Then we obtain binary hologram by nonlinear amplitude limiting model. The proposed binary processing retains more information and improves the diffraction efficiency for reconstruction object. This CGH theoretical formula is derived also. Theoretical analysis and simulation results show that the improved method received better diffraction efficiency than the hologram getting from average nonlinear amplitude limiting model. The technique has a good prospect in the application of hologram optical information processing.