There are several types of sights used for small arms. All of them have advantages and disadvantages. A new type of sight-holographic sight-is introduced in the paper, with the emphasis on the fabrication technique of the hologram which is the most important part in the sight. A Gaussian dot and a reticle pattern are recorded in the hologram. When illuminated by a laser diode, the virtual images of the dot and the reticle pattern for aiming are observed through the hologram. Compared with other sights, the holographic sight provides quicker, more accurate and covert aiming at moving targets, particularly in close quarter combat situations. It significantly improves the capability of small arms used in close quarter fighting in all weathers.