Using a z-scan technique, we have shown that in Mn:YAlO3 the nonlocal component of the photorefractive response is greater than the local contribution. Although the strongest photorefractive response measured by the z-scan technique was found at light polarization Eparallel to the crystallographic axis b (E‖ b), the highest holographic diffraction efficiency was obtained at E‖ c. The observed seeming discrepancy between the z-scan results and the holographic diffraction-efficiency results is explained by polarization-dependent photoinduced absorption: This absorption has the smallest intensity and the smallest effect on the holographic diffraction efficiency at E‖ c.