Gather a cluster of American holly berries in autumn once they ripen to a bright, even red. Look for ones that are slightly shriveled since they will release their seeds more easily.
Fill a bucket with water. Place the berries in the water. Reach into the water and squeeze the holly berries to pulverize the flesh. Soak the berries for 48 hours.
Scoop out and discard the berry flesh floating on the surface of the water. Pour off the water. Remove the seeds from the bottom of the bucket.
Lay the holly seeds on a flat surface to dry for a few hours. Store them in a plastic bag until mid-December.
Prepare a container for each holly shrub you want to grow. Fill 1-gallon nursery containers with a thoroughly combined planting mixture comprised of two parts compost, two parts garden soil and one part coarse sand.
Sow three holly seeds in each nursery container. Place the seeds on the surface of the soil. Spread a 1-inch layer of coarse sand over the seeds. Wet the soil to a depth of 4 inches.
Set the nursery containers outside in a partially shaded location with one to three hours of direct sun each day. Avoid areas in full sun throughout the entire day since the soil will dry out too quickly.
Water the holly seeds only if no rain falls for longer than three weeks. Water to a depth of 4 inches, if needed.
Watch for germination in two months but do not be concerned if takes up to four months for the seeds to sprout. Thin the holly seedlings to one per container as soon as they sprout two mature leaves. Remove the weaker seedlings and leave the strongest.
Keep the seedlings in their original nursery containers until late spring, then plant them 10 to 15 feet apart in a partially shaded spot.