Based on the principle of volume holographic storage in Fe∶LiNbO 3 crystal and angle fractal multiplexing, using diode pumped solid state laser (DPL) instead of huge ionized argon laser, a compact volume holographic data storage and correlation system was designed and constructed. The correlation of 1000 human face images is realized, and by using of wavelet transform to extract the edge character of each image, comparatively exact identification results are obtained.