The aim of this work was to evaluate (R)-g-hydroxyisobutyric acid (HIBA) production by microbial stereoselective oxidation of 2-methyl-1,3 propanediol under different conditions, and to compare the performance of this bioconversion in traditional aqueous media and aqueous/organic biphasic media. The oxidation is a two-step reaction with hydroxyisobutanal as an intermediate. Among the operational factors tested, pH and aeration were those, which most significantly affected the biocatalytic activity. Enantiomeric excesses higher than 95% were consistently obtained. For substrate concentrations above 50 mg ml−1 a slight substrate inhibition was observed. Product inhibition was much stronger, and together with the decrease of the pH during the bioconversion was the most important limiting factor in long-term bioconversions. Kinetic parameters were determined for different pH values. A compromise pH value of 4 was determined to be the optimum for HIBA production and simultaneous extraction with an organic phase of trioctyl phosphine oxide (TOPO) in isooctane.