In this study, new functionalized polysiloxane material was synthesized. The polysiloxane‐based electrooptic material with side‐chain charge‐transporting functionalities and nonlinear optical chromophores was investigated through a three‐step synthetic route. Elementary analysis and NMR spectra indicate that the polymer has a high degree of substitution. Detailed physical properties showed that the polymer has a glass transition of around 91°C, and its photoconductivity and electrooptic coefficient increase with the increasing applied electric field. Photorefractivity of the system has been demonstrated through the asymmetric energy transfer in a two‐beam coupling experiment. © 1999 John Wiley & Sons, Inc. J Polym Sci A: Polym Chem 37: 3854–3860, 1999