The signal quality of holographic memory is greatly lowered by the pixel mismatch between the charge-coupled device (CCD) and the reproduced image caused by image distortion. This paper discusses an approach to improve the signal quality by using two step decoding method. By this method, first, distortion correction is done to improve the degree of pixel mismatch to obtain better signal to noise ratio (SNR). Then, to eliminate errors such as noise that cannot be removed by distortion correction, soft decision Viterbi decoding using the newly defined reliability is used to correct errors. The effectiveness of this two step decoding method was tested by computer simulation, and its effect to improve SNR and reduce errors was confirmed.