Abstract: Based on the complicated noise characteristics in digital holographic storage system(DHSS), some methods of channel code in digital communication are introduced. In order to improve effect of traditional modulation code, a new modulation-array (MA) code and a novel soft-decision method corresponding to MA code are proposed for data processing in DHSS. Also developed based on the MA code is a new iterative decoding algorithm, which integrates principles of modulation code detection, soft-decision, array code error-correction and Turbo code decoding. The experimental results show that this MA code can be employed in the system and can reduce effectively the influence of noise.