Abstract This paper proposes a novel dynamic 2-step phase-shifting interferometry method with a geometric phase grating and direct aberration-free object phase recovery algorithm. By exploring the amplitude-phase modulation property of the geometric phase grating, two-step phase-shifting interferograms with phase shift can be obtained in a single shot through two kinds of spatial-multiplexing arrangements. Then the desired object phase without being disturbed by the system aberration phase would be formed based on the presented 2-step phase-shifting phase demodulation process. Accordingly, a detailed analysis of the theoretical model of error sources is conducted by taking the depolarization error of geometric phase grating and phase measurement model error into consideration, with a Least Squares Iteration optimization strategy established to further improve the measurement accuracy. Experiments on various types of phase objects, such as a photo-etched quartz substrate, the spatial light modulator, and a silicon chip, validate the effectiveness and accuracy of our method when compared with the reference phase obtained from 4-step temporal phase-shifting method. The dynamic phase measurement capability is demonstrated by exhibiting the evaporation process of alcohol droplet.