Beginning 1990s protests for the greater democracy began in Mongolia and as in many East European countries, these protests led to the end of the Communist regime and the adoption of democratic, multiparty elections in 1990.
While there have been debates on the method and pace of the Government’s reform program, almost all of the political parties in Mongolia are committed to a broad reform of Mongolia’s economic and political systems to better support a market economy.

Important prehistoric sites are the Paleolithic cave drawings of the Khoid Tsenkheriin Agui (Northern Cave of Blue) in Khovd Province, and the Tsagaan Agui (White Cave) in Bayankhongor Province[citation needed]. A Neolithic farming settlement has been found in Dornod Province. Contemporary findings from western Mongolia include only temporary encampments of hunters and fishers. The population during the Copper Age has been described as paleomongolid in the east of what is now Mongolia, and as europid in the west.

In the second millennium B.C, during the bronze age, western Mongolia was under the influence of the Karasuk culture. Deer stones and the omnipresent keregsürens (small kurgans) probably are from this era; other theories date the deer stones as 7th or 8th centuries BCE. A vast iron-age burial complex from the 5th-3rd century, later also used by the Xiongnu, has been unearthed near Ulaangom.

Mongolia, since prehistoric times, has been inhabited by nomads who, from time to time, formed great confederations that rose to prominence. The first of these, the Xiongnu, were brought together to form a confederation by Modu Shanyu in 209 BC. Soon they emerged as the greatest threat to the Qin Dynasty, forcing the latter to construct the Great Wall of China, itself being guarded by up to almost 300,000 soldiers during marshal Meng Tian's tenure, as a means of defense against the destructive Xiongnu raids. After the decline of the Xiongnu, the Rouran, a close relative of the Mongols, came to power before being defeated by the Göktürks, who then dominated Mongolia for centuries. During the seventh and eighth centuries, they were succeeded by Uyghurs and then by the Khitans and Jurchens. By the tenth century, the country was divided into numerous tribes linked through transient alliances and involved in the old patterns of internal strife.

In the chaos of the late twelfth century, a chieftain named Temüjin finally succeeded in uniting the Mongol tribes between Manchuria and the Altai Mountains. In 1206, he took the title Genghis Khan, and waged a series of military campaigns - renowned for their brutality and ferocity - sweeping through much of Asia, and forming the Mongol Empire, the largest contiguous land empire in world history. Under his successors it stretched from present-day Poland in the west to Korea in the east, and from Siberia in the north to the Gulf of Oman and Vietnam in the south, covering some 33,000,000 km2 (12,741,000 sq mi), (22% of Earth's total land area) and having a population of over 100 million people. After Genghis Khan's death, the empire had been subdivided into four kingdoms or Khanates which eventually split-up after Möngke's death in 1259. One of the khanates, the "Great Khaanate", consisting of the Mongol homeland and China, became the Yuan Dynasty under Kublai Khan, the grandson of Genghis Khan. He set up his capital in present day Beijing but after more than a century of power, the Yuan was replaced by the Ming Dynasty in 1368, with the Mongol court fleeing to the north. As the Ming armies pursued the Mongols into their homeland, they successfully sacked and destroyed the Mongol capital Karakorum among other cities, wiping out the cultural progress that was achieved during the imperial period and thus throwing Mongolia back to anarchy.

The next centuries were marked by violent power struggles between various factions, notably the Genghisids and the non-Genghisid Oirads and numerous Chinese invasions (like the five expeditions led by the Yongle Emperor). In the early 15th century, the Oirads under Esen Tayisi gained the upper hand, and even raided China in 1449 in a conflict over Esen's right to pay tribute, capturing the Chinese emperor in the process. However, Esen was murdered in 1454, and the Genghisids recovered. In the mid-16th century, Altan Khan of the Tümed, a grandson of Batumöngke - but no legitimate Khan himself - became powerful. He founded Hohhot in 1557 and his meeting with the Dalai Lama in 1578 sparked the second introduction of Tibetan Buddhism to Mongolia. Abtai Khan of the Khalkha converted to buddhism in 1585 and founded the Erdene Zuu monastery in 1586. His grandson Zanabazar became the first Jebtsundamba Khutughtu in 1640.

The last Mongol Khan was Ligden Khan in the early 17th century. He got into conflicts with the Manchu over the looting of Chinese cities, and managed to alienate most Mongol tribes. He died in 1634 on his way to Tibet, in an attempt to evade the Manchu and destroy the Yellow Hat sect of Buddhism. By 1636, most Inner Mongolian tribes had submitted to the Manchu. The Khalkha eventually submitted to the Qing in 1691, thus bringing all but the west of today's Mongolia under Beijing's rule. After several wars, the Dzungars were virtually annihilated in 1757. Until 1911, the Manchu maintained control of Mongolia with a series of alliances and intermarriages, as well as military and economic measures. Ambans, Manchu "high officials", were installed in Khüree, Uliastai, and Khovd, and the country was subdivided into ever more feudal and ecclesiastical fiefdoms. Over the course of the 19th century, the feudal lords attached more importance to representation and less importance to the responsibilities towards their subjects. In addition the usurious practices of the Chinese traders, along with the collection of imperial taxes in silver instead of animals, resulted in poverty becoming rampant.

With the fall of the Qing Dynasty, Mongolia under the Bogd Khaan declared independence in 1911. However, the equally newly-established Republic of China claimed Mongolia as part of its own territory. The area controlled by the Bogd Khaan was approximately that of the former Outer Mongolia. The 49 hoshuns of Inner Mongolia as well as the Mongolians of the Alashan and Qinghai regions expressed their willingness to join the new country, but to no avail. In 1919, after the October Revolution in Russia, Chinese troops led by Xu Shuzheng occupied Mongolia. However, as a result of the Russian Civil War, the White Russian adventurer Baron Ungern led his troops into Mongolia in October 1920, defeating the Chinese in Niislel Khüree (Ulaanbaatar) in early February 1921. In order to eliminate the threat posed by Ungern, Bolshevik Russia decided to support the establishment of a communist Mongolian government and army. This Mongolian army took the Mongolian part of Kyakhta from the Chinese on March 18th, 1921, and on July 6th Russian and Mongolian troops arrived in Khüree. Mongolia's independence was declared once again on July 11th, 1921. These events led to Mongolia's close alignment with the Soviet Union over the next seven decades.

In 1924, after the death of the religious leader and king Bogd Khan, a Mongolian People's Republic was proclaimed with support from the Soviets.

In 1928, Khorloogiin Choibalsan rose to power. He instituted collectivisation of livestock, the destruction of Buddhist monasteries and the Mongolia's enemies of the people persecution resulting in the murder of monks and other people. In Mongolia during the 1920s, approximately one third of the male population were monks. By the beginning of the 20th century about 750 monasteries were functioning in Mongolia.[12] The Stalinist purges in Mongolia beginning in 1937, affected the Republic as it left more than 30,000 people dead. Japanese imperialism became even more alarming after the invasion of neighboring Manchuria in 1931. During the Soviet-Japanese Border War of 1939, the USSR successfully defended Mongolia against Japanese expansionism. In August 1945 Mongolian forces also took part in the Soviet Manchurian Strategic Offensive Operation in Inner Mongolia. The Soviet threat of seizing parts of Inner Mongolia[citation needed] induced China to recognize Outer Mongolia's independence, provided that a referendum was held. The referendum took place on October 20, 1945, with (according to official numbers) 100% of the electorate voting for independence. After the establishment of the People's Republic of China, both countries confirmed their mutual recognition on October 6, 1949.

In January 26, 1952, Yumjaagiin Tsedenbal took power. In 1956 and again in 1962, Choibalsan's personality cult was condemned. Mongolia continued to align itself closely with the Soviet Union, especially after the Sino-Soviet split of the late 1950s. While Tsedenbal was visiting Moscow in August 1984, his severe illness prompted the parliament to announce his retirement and replace him with Jambyn Batmönkh.

The introduction of perestroika and glasnost in the USSR by Mikhail Gorbachev strongly influenced Mongolian politics leading to the peaceful Democratic Revolution and the introduction of a multi-party system and market economy. A new constitution was introduced in 1992, and the "People's Republic" was dropped from the country's name. The transition to market economy was often rocky, the early 1990s saw high inflation and food shortages. The first election wins for non-communist parties came in 1993 (presidential elections) and 1996 (parliamentary elections).