The modern democratic era of Mongolia began after the Democratic Revolution of 1990, which occurred in the wake of the 1989 Revolutions and the collapse of the Soviet Union. The peaceful demonstrations led to the resignation of the entire politburo in March 1990, subsequently paving the way to democratization.

Up until then, the country's sole legal party was the Mongolian People's Revolutionary Party (MPRP), ruling since 1921. After the 1990 revolution, Mongolia underwent a massive political transition from a socialist one-party state to a multi-party parliamentary democracy. The first free and fair elections were held in July 1990. The democratically elected People's Great Khural established a small lower house, the State Little Khural, and elected a president, a prime minister and a vice president. A new constitution was drafted in 1991, ratified by Mongolia's first president, Punsalmaagiin Ochirbat, on 13 January 1992, and put into force on 12 February 1992. The ratification of Mongolia's fourth constitution officially ended the 68-year-old Mongolian People's Republic. The MPRP, now distanced from communism, retained its parliamentary majority in 1992. It wouldn't be until 1996 when the party transferred power to the Mongolian opposition. Since then, the Mongolian People's Party (renamed MPRP) and the Democratic Party emerged as the dominant two parties, with alternating political power.

With the end to Soviet aid in 1991, Mongolia, in its early transitional years from a planned economy to a market economy, faced a severe economic shock with a sharp decline in production, hyperinflation, high unemployment, and exacterbated poverty due to weakened social services. The implementation of privatization, market liberalization, and market-oriented reforms began gradual economic recovery in 1994. Mining in Mongolia would be the primary source of income, following a series of foreign investment in the 2000s and 2010s. Consequently, economic overdependence, environmental impacts and resource nationalism from mining became a prevalent issue alongside endemic corruption, inequality, and poverty.

Since the 1990s, Mongolia pursued a neutral foreign policy, dubbed the Third neighbor policy, at the global stage. The country has been a prominent contributor to the United Nations peacekeeping efforts, with more than 23,000 personnel deployed between 2002 and 2025.

Prelude The Mongolian People's Republic (MPR), since its establishment in 1924, has been a socialist satellite state of the Soviet Union throughout much of its existence. The two states maintained close political and economic ties in the aftermath of the Sino-Soviet split. With Soviet support, the country experienced rapid industrialisation, collectivisation, and modernization along with social reforms at the cost of political, cultural, and religious freedom.

Inspired by Mikhail Gorbachev's reforms in the Soviet Union, the leadership under Jambyn Batmönkh implemented market reforms but failed to appeal to those who, in late 1989, wanted broader political and societal changes. Concepts of glasnost, freedom of speech, and economic liberties inspired the initial discussions that would lead to the revolution.

Beginning in December 1988, the ruling party's mouthpiece, Ünen (lit."Truth"), began publishing a new column called "Workers' Letters," which criticized the Politburo and party leaders for the first time. Also in December, a youth underground organization called "New Generation" () was established by young dissidents: Erdeniin Bat-Üül, Sosorbaramyn Tsogtsaikhan, and Sukhbaataryn Amarsanaa.

The first public demonstrations took place on 6 December 1989 in Erdenet, the second-largest city of the MPR. During the demonstration, protestors submitted demands to local party structures for the withdrawal of Soviet troops from Erdenet, the full nationalization of Erdenet Mining Corporation (jointly owned by the governments of the MPR and the USSR), and the resignation of the Politburo of the MPRP's Central Committee.

The next day, on 7 December, similar demonstrations by teachers and students took place in Ard Ayush square at Khovd, the provincial capital of Khovd Province. The demonstrators handed over demands for the resignation of the Politburo and the government to the local governing body, which were to be delivered to Ulaanbaatar, the capital.

1990 Democratic revolution

On the morning of 10 December 1989, the first open pro-democracy demonstration took place in front of the Youth Cultural Center in Ulaanbaatar. There, Elbegdorj announced the creation of the Mongolian Democratic Union (MDU). At the demonstration, the MDU founders publicly petitioned the government for a real implementation of Perestroika, allowing a multi-party system, and the total implementation of the Universal Declaration of Human Rights in all party and government affairs.

In subsequent months, the activists led by 13 democracy leaders including Tsakhiagiin Elbegdorj, Sanjaasürengiin Zorig, Erdeniin Bat-Üül, Bat-Erdeniin Batbayar and others continued to organize demonstrations, rallies, protests and hunger strikes, as well as teachers' and workers' strikes. The activists had growing support from Mongolians, both in the capital and the countryside, and the union's activities led to other calls for democracy all over the country. On 2 January 1990, the MDU began distributing leaflets calling for a democratic revolution. When the government did not comply with these and later, more aggressive demands, demonstrations occurred. On January 14, 1990, some 1000 protesters met on the square in front of the Lenin Museum, which has been renamed as Freedom Square since then, in Ulaanbaatar. A demonstration on Sükhbaatar Square on 21 January (in weather of -30 C) followed. Protestors carried banners alluding to Genghis Khan, rehabilitating a figure which Soviet schooling neglected to praise. They celebrated Daramyn Tömör-Ochir, a statesman who was purged from the MPRP in 1962 as part of the MPRP's efforts to suppress the commemoration of the 800th anniversary of Genghis Khan's birth. Demonstrators carried a modified Flag of Mongolia, which lacked a star symbolizing socialism; this flag would become the new flag after the revolution.After numerous demonstrations of many thousands of people in the capital city as well as provincial centers, on 4 March 1990, the MDU and three other reform organizations held a joint outdoor mass meeting, inviting the government to attend. The government sent no representative to what became a demonstration of over 100,000 people demanding democratic change.

Ten members of the organizations began a hunger strike on 7 March. The next day, the Politburo of the Mongolian People's Revolutionary Party – the highest authority of the party – eventually gave way to the pressure and entered negotiations with opposition leaders. An agreement was reached between the two sides after round table talks on 8-9 March 1990. Consequently, Jambyn Batmönkh, general secretary of the MPRP, announced his resignation and dissolution of the politburo via radio broadcast on 9 March 1990. During the MPRP plenum on 12-14 March, Batmönkh was relieved from his party duties and the politburo was reshuffled with reform-minded leaders. Behind the scenes, however, the MPRP had seriously considered cracking down on the protesters, writing a decree that was left to be signed by the party leader Batmönkh. Batmönkh opposed it, maintaining a strict policy of never using force (). People those were present there later recalled that Batmönkh said "I will never sign this. We few Mongols have not yet come to the point that we will make each other's noses bleed," smacked the table, and left the room." The news of the Politburo resignation was announced to hunger strikers and people who gathered on Sükhbaatar Square at 10 PM on 9 March after the negotiations between leaders of the MPRP and the MDU. Constitutional amendments removing the leading role of the MPRP were made by the People's Great Khural on 21-23 March, ending the 70-year-old one-party rule.

In April, the conflict worsened, with the government restricting the freedom of assembly and the democracy leaders submitting an ultimatum demanding equal participation of all political groups. The MPRP refused to accede to the demands. However, in May, under pressure and after negotiations with members of the opposition movement, the People's Great Khural approved the Law on Political Parties. Dates for the multiparty democratic elections for the national, provincial, and municipal khurals were agreed on 14 May. In the lead up to the election, six political parties were registered by the Supreme Court of the MPR in May.

1990–1992: Democratic transition

1990 parliamentary elections

Following the collapse of the communist regime, Mongolia's first free, multi-party legislative elections were held on 29 July 1990. Six political parties ran for 430 seats in the People's Great Khural (upper house) and 50 seats in the new State Little Khural (lower house). With opposition parties unable to nominate enough candidates, the ruling Mongolian People's Revolutionary Party (MPRP) won 357 seats and an 83% majority in the Great Khural. Members of the State Little Khural were to be elected via proportional representation. One seat equaled around 5% of the party vote. The People's Great Khural first met on 3 September and elected the president (MPRP), vice president (MSDP), prime minister (MPRP), and 50 members to the Little Khural. The vice president was also chairman of the Little Khural. The MPRP, which won 61% of the votes, received 31 of the 50 seats in the lower house. PartyAcronymPeople's Great KhuralState Little KhuralMongolian People's Revolutionary PartyMPRP35731Mongolian Democratic PartyMDP1613Mongolian Revolutionary Youth LeagueMRYL9–Mongolian National Progress PartyMNPP63Mongolian Social Democratic PartyMSDP43Independents–38–Total43050Source: Nohlen et el., GEC The new MPRP government under Dashiin Byambasüren formed a unity government with the opposition parties and implemented constitutional and economic reforms. Two high-ranking ministers of the Byambasüren cabinet were non-MPRP ministers; these being First Deputy Prime Minister Davaadorjiin Ganbold (MNPP chairman) and Deputy Prime Minister Dambiin Dorligjav (deputy MDP chairman).

1992 Constitution of Mongolia

In November 1991, the People's Great Khural began discussion on a new constitution, which entered into force on 12 February 1992. In addition to establishing Mongolia as an independent, sovereign republic and guaranteeing a number of rights and freedoms, the new constitution restructured the legislative branch of government, creating a unicameral legislature, the State Great Khural.

Economy

In the early and mid-1990s, with the collapse of the Soviet Union, which had until 1990 provided significant economic aid to Mongolia's state budget, the country faced severe economic problems dating back to the 1980s. Foreign trade collapsed, economic and technical aid from the former socialist countries ended, and the domestic economy struggled with privatization. Inflation rose, stores' shelves were depleted, and ration cards for food were issued for a period of time. A thriving black market had arisen in Ulaanbaatar by 1988 to meet the needs of the populace.

1990s after the transition