Self-diffraction in Acid Red 87 (eosin Y) dye doped thin films is studied using argon ion laser (514.5 nm). Growth of self-diffraction grating is monitored by measuring intensities of various diffraction orders. This study has resulted in the observation of phase variation between the contributing beams in any diffracted order. This change of phase is measured at various stages of grating formation. Due to self-phase modulation, circular concentric rings pattern is obtained in the far field. The observed fluctuation in this pattern may be due to the phase variation between the contributing beams in any diffracted order. Z-scan technique is used to study the optical non-linearity of the sample. (c) 2005 Elsevier B.V. All rights reserved.