Provided are a liquid crystal diffraction element which exhibits low scattering and high sharpness of diffracted light, and a method for producing the same. A liquid crystal diffraction element having an alignment film which has a periodic pattern and also having a cholesteric liquid crystal layer, in which: the periodic pattern is imparted to the alignment film as a result of alignment elements having different tilt angles being periodically arranged in the alignment film or the alignment elements being arranged in a manner such that the azimuth direction thereof swings in one in-plane direction; the direction of the molecular axis of a liquid crystal compound changes while continuously rotating and in at least one in-plane direction on at least one main surface among the pair of main surfaces of the cholesteric liquid crystal layer; the molecular axis of the liquid crystal compound is tilted with respect to the main surfaces of the cholesteric liquid crystal layer; and an arrangement direction of bright portion and dark portion derived from the cholesteric liquid crystalline phase observed by a scanning electron microscope in a cross section perpendicular to the main surfaces is tilted with respect to the main surfaces of the cholesteric liquid crystal layer.