Hot-compression tests were conducted in a high-energy synchrotron x-ray beam to study in situ and in real time microstructural changes in the bulk of a β-solidifying titanium aluminide alloy. The occupancy and spottiness of the diffraction rings have been evaluated in order to access grain growth and refinement, orientation relationships, subgrain formation, dynamic recovery, and dynamic recrystallization, as well as phase transformations. This method has been applied to an alloy consisting of two coexisting phases at high temperature and it was found that the bcc β-phase recrystallizes dynamically, much faster than the hcp α-phase, which deforms predominantly through crystallographic slip underpinned by a dynamic recovery process with only a small component of dynamic recrystallization. The two phases deform to a very large extent independently from each other. The rapid recrystallization dynamics of the β-phase combined with the easy and isotropic slip characteristics of the bcc structure explain the excellent deformation behavior of the material, while the presence of two phases effectively suppresses grain growth.