The forest industry in Uruguay has grown considerably during the last decade. Eucalyptus plantations account for 74 percent of the forested land, with Eucalyptus globulus being the most widely distributed species. This industry is dedicated exclusively to the production of wood without exploiting the by-products (leaves and small branches). Eucalyptus leaves are known to contain important amounts of essential oils composed primarily of 1,8-cineole (1,3,3-trymethyl-2-oxabicyclo[2.2.2]octane). In this work, the biotransformation of 1,8-cineole, is achieved using a native bacterium (Rhodococcus sp.) which was isolated from the soil of Eucalyptus forest. A 98 percent of bioconversion was achieved. Three different optically pure compounds were obtained, and they were identified as 2-endo-hydroxy-1,8-cineole, 2-exo-hydroxy-1,8-cineole and 2-oxo-1,8-cineole.