Transition structures of the 1,3-dipolar cycloaddition of substituted nitrile oxides with chiral homoallylic alcohols were explored with density functional theory (B3LYP/6-311+G(d,p)+CPCM(dichloromethane)//B3LYP/6-31+G(d)). The diastereoselectivity observed in these reactions was explained. The anti product is favored in both the thermal and magnesium-mediated reactions. Selectivity is predicted to increase in the presence of magnesium, in agreement with experimental results. The energetics of the magnesium-mediated reaction are similar to those previously found for allylic alcohols. [structure: see text].