The mechanism of two major directions for the selective oxidative transformations of lower paraffins; (i) dehydrogenation and coupling; and (ii) oxidation with oxy-product formation are considered. Oxidative dehydrogenation and coupling are ’in temperature reactions’, which proceed at the temperature required for effective hydrocarbon activation, with the participation of the lattice oxygen. The reactions with oxy-product formation, due to product instability, proceed at lower temperature (’under-temperature reactions’), when an effective interaction of hydrocarbon with the lattice oxygen cannot lake place. For these reactions the participation of active forms of oxygen on the catalyst surface is necessary, this limited the maximum yield of the product due to competition and deep oxidation. For the coupling and dehydrogenation reactions, basic catalysts are more preferable, while for the reactions with oxy-product formations, acid catalysts are necessary.