The feasibility of applying bacterial hemoglobin technology to degrade 2‐chlorobenzoate (2‐CBA) through co‐metabolism under hypoxic conditions in a membrane bioreactor (MBR) process has been studied in the laboratory. 2‐chlorobenzoate removal and chloride release rates in the MBR system varied from 99 to 78% and 98 to 73%, respectively, depending on the operation conditions. Chemical oxygen demand (COD) removal efficiencies were more than 90% at food‐to‐microorganism ratios ranging from 0.32 to 0.62 g/g/d, and the observed yield was 0.13 to 0.20 g biomass/g COD. The bacterial cell‐floc size‐distribution analysis showed that there is a significant change in bacterial floc size due to high shear stress during operation of the MBR. To characterize growth kinetics of Burkholderia cepacia strain dinitrotoluene, a mathematical model that describes co‐metabolic oxidation of 2‐CBA in an MBR has been developed.