Laser induced damage threshold (LIDT) of multi-layer dielectric used in pulse compressor gratings (PCG) was investigated. The sample was prepared by e-beam evaporation (EBE). LIDT was detected following ISO standard 11254-1.2. It was found that LIDTs of normal and 51.2 deg. incidence (transverse electric (TE) mode) were 14.14 and 9.31 J/cm2, respectively. A Nomarski microscope was employed to map the damage morphology, and it was found that the damage behavior was pit-concave-plat structure for normal incidence, while it was pit structure for 51.2 deg. incidence with TE mode. The electric field distribution was calculated to illuminate the difference of LIDT between the two incident cases.