Mongolia is one of the world's last true frontiers, and contrary to popular belief, it can be explored on an ultra-lean budget. By utilizing the domestic train network and public intercity buses, you can traverse thousands of kilometers without the high cost of private jeep tours. This itinerary focuses on the 'real' Mongolia—the industrial hubs, the sacred desert sites, and the bustling capital—all while staying in hostels and eating cheap, hearty street food like khuushuur.
Budget backpacking here requires patience and a love for long train rides. Your $10 daily budget will cover shared hostel dorms (often $5-7) and local meals. You will experience the legendary hospitality of the Mongolian people while witnessing landscapes that transition from the arid Gobi to the lush northern forests, all from the window of a Trans-Mongolian carriage.
The Itinerary
Day 1: Ulaanbaatar, Mongolia - Arrival and Central Hub
Sukhbaatar Square
Start your journey at the heart of the capital. This massive square features the Parliament House and the grand statue of Genghis Khan. It is free to explore and perfect for people-watching.
Gandantegchinlen Monastery
Visit the most important monastery in Mongolia. While some temples require a small fee, walking the grounds and observing the massive golden Migjid Janraisig statue is a spiritual and affordable experience.
National Museum of Mongolia
Learn about the nomadic history and the Mongol Empire. It offers the most comprehensive look at the country's past for a very modest entry fee.
Peace Avenue Walk
Walk the main artery of the city. Grab some cheap street food like 'buuz' (steamed dumplings) from a local 'Guanz' (small canteen) for under $2.
Day 2: Ulaanbaatar, Mongolia - Local Markets & Vistas
Narantuul Market (Black Market)
The largest open-air market in the country. It is free to enter and offers a raw look at local commerce, from traditional del robes to horse saddles. Keep your belongings close.
Zaisan Memorial
Climb the steps to this hilltop memorial for the best panoramic view of Ulaanbaatar and the surrounding mountains. The climb is free and the view is spectacular.
Buddha Park
Located at the base of Zaisan, this small park features a 16-meter tall Buddha statue. It's a quiet spot to rest before heading back to the city center.
Hostel Social Hour
Head back to your hostel to meet other travelers and plan the upcoming train legs. Grouping up can help save on communal food costs.
Day 3: Ulaanbaatar, Mongolia - Culture & Preparation
Choijin Lama Temple Museum
A hidden architectural gem in the middle of the skyscrapers. This former monastery is now a museum showcasing intricate Buddhist art and masks.
State Department Store (6th Floor)
Visit the top floor for the largest selection of Mongolian souvenirs and books. It's a great place to browse, and the ground floor has a cheap supermarket for snacks.
Ulaanbaatar Railway Station
Walk to the station to purchase your domestic train tickets for the following day. Buying in person at the 'Kassa' is the cheapest way to secure a bunk.
Dinner at a 'Guanz'
Enjoy a massive plate of tsuivan (fried noodles) for less than $3. These local eateries are the backbone of a budget traveler's diet.
Day 4: Ulaanbaatar to Erdenet, Mongolia - The Northern Line
Morning Train Boarding
Board the domestic train heading north. The journey to Erdenet takes roughly 8 to 10 hours and offers incredible views of the rolling green hills and nomadic gers.
Train Picnic
Eat your pre-packed lunch as you pass through the Darkhan-Uul province. Interacting with local families on the train is one of the best free experiences in Mongolia.
Arrival in Erdenet
Arrive in Mongolia's second-largest city. Take a local bus from the station to the city center to save on taxi fares.
Check-in at Local Guesthouse
Settle into a local guesthouse or small hotel. Prices here are significantly lower than in the capital.
Day 5: Erdenet, Mongolia - Industrial Exploration
Statue of Friendship
Visit this landmark overlooking the city, which symbolizes the history between Mongolia and Russia. It provides a great vantage point for photos.
Erdenet Mining Viewpoint
Erdenet is home to one of the largest copper mines in the world. Viewing the massive scale of the operation from designated public spots is a unique industrial sight.
Local Erdenet Market
Explore the local food market. It is smaller and more relaxed than UB's markets, making it easier to try local dairy products like 'aaruul' (dried curd).
Central Square Walking
Enjoy the evening with local residents in the city's clean and well-maintained central square.
Day 6: Erdenet to Bulgan, Mongolia - Deep Steppe
Regional Bus Station
Catch a local 'mikro' (minivan) or bus to Bulgan city. This is the gateway to the more rural northern provinces.
Bulgan City Arrival
Explore this quiet provincial center. It feels like stepping back in time compared to the bustle of Ulaanbaatar.
Dashchoinkhorlon Monastery
A beautiful, smaller monastery in Bulgan that offers a more intimate look at Buddhist practice without the crowds of UB.
Homestay Experience
Find a local family offering a room. This is often the only way to stay in smaller towns and is incredibly affordable.
Day 7: Bulgan to Darkhan, Mongolia - The Steel City
Travel to Darkhan
Take a public bus east toward Darkhan, the third-largest city in Mongolia. The road passes through fertile agricultural land.
Seated Buddha Statue
Visit the impressive Golden Buddha statue located in a park in the 'New Darkhan' area. It is a peaceful place for a walk.
Morin Khuur Monument
See the monument dedicated to the Horsehead Fiddle, Mongolia's national instrument, which is a major point of pride in this city.
Local Darkhan Eats
Darkhan has some of the cheapest food in the country. Try the local 'Khuushuur' (fried meat pies) at a street stall.
Day 8: Darkhan to Sukhbaatar, Mongolia - Northern Frontier
Morning Train to Sukhbaatar
Hop on the northern train line to the border city of Sukhbaatar. This short rail leg is very cheap and very scenic as it follows the Selenge River.
Selenge River Banks
Walk down to the banks of the Selenge, Mongolia's largest river. It is a beautiful spot for a budget-friendly picnic.
Sukhbaatar Central Square
Explore the small but charming square of this border town, named after the revolutionary hero Damdin Sükhbaatar.
Guesthouse Rest
Stay in a local guesthouse. Many travelers here are on their way to or from Russia, making for interesting conversations.
Day 9: Sukhbaatar, Mongolia - Border Vibe
Altanbulag Excursion
Take a local shared taxi to Altanbulag, the actual border crossing point. While you can't cross without a visa, seeing the bustle of the Free Trade Zone is fascinating.
Local Frontier Market
Check out the goods coming across the border. You can find unique Russian snacks and Mongolian wool products at low prices.
Selenge Provincial Museum
A small museum detailing the history of the region and the revolutionary events that started in this area.
Quiet Evening by the River
Enjoy the sunset over the river. It's one of the most serene and free experiences in Northern Mongolia.
Day 10: Sukhbaatar to Ulaanbaatar, Mongolia - The Long Haul South
Board Southbound Train
Settle in for the all-day journey back to the capital. Use this time to write in your journal or share stories with Mongolian passengers.
Scenic Steppe Viewing
The landscape changes significantly as you move south from the forested north back toward the central plains.
Arrival in Ulaanbaatar
Return to your familiar base in UB. Many hostels allow you to store luggage while you take these side trips.
Late Dinner
Grab a quick meal at the UB train station canteen, which stays open late and serves cheap, hot food.
Day 11: Ulaanbaatar to Gorkhi-Terelj, Mongolia - Alpine Escape
Public Bus to Terelj
Catch the public bus from the 'Peace Avenue' stop near the State Department Store. It costs less than $2 and takes about 2 hours to reach the National Park.
Turtle Rock (Melkhii Khad)
Get off the bus at the famous Turtle Rock. This massive natural formation is free to visit and offers great climbing opportunities.
Aryapala Meditation Center
Walk up the hill to this beautiful meditation center. The walk features placards with Buddhist wisdom and the view from the top is breathtaking.
Ger Camp Stay
Find a low-cost ger camp or a local family that allows travelers to sleep in a guest ger. It's a quintessential Mongolian experience.
Day 12: Terelj National Park, Mongolia - Into the Wild
Hiking the Valley
Spend the day hiking the hills of Terelj. There are no entrance fees for hikers once you are inside the park, making it a budget paradise.
Picnic by the River
Relax by the Terelj River. Bring your own supplies from UB to avoid the inflated prices of the park's small shops.
Visit a Local Herder Family
Many families in the park are happy to show you their lifestyle. If you are offered 'Airag' (fermented mare's milk), it's polite to take a sip.
Star Gazing
With no city lights, the night sky in Terelj is incredible. This is a world-class experience that costs absolutely nothing.
Day 13: Terelj to Sainshand, Mongolia - Heading to the Gobi
Bus back to UB
Catch the early morning public bus back to Ulaanbaatar to prepare for your night train to the Gobi Desert.
Stock up in UB
Buy plenty of water and snacks at a local 'Nomad' supermarket. Prices in the desert towns are higher and selection is limited.
Overnight Train to Sainshand
Board the sleeper train heading south toward the Chinese border. This is the most affordable way to reach the Gobi Desert.
Sleep on the Rails
Enjoy the rhythmic rocking of the train as you cross the desert plains under the moonlight.
Day 14: Sainshand, Mongolia - The Energy Center
Arrival in Sainshand
Arrive in the capital of the Dornogovi province. It's a dusty, atmospheric desert town.
Khamariin Khiid (Energy Center)
Take a local shared van to the 'Shambhala' energy center. It's believed by locals to be the spiritual gateway to the universe. Entry to the site is free.
Danzanravjaa Museum
Visit the museum dedicated to the 'Terrible Noble Saint of the Gobi.' It houses incredible artifacts that were hidden in the desert for decades.
Sainshand Town Walk
Walk through the desert town. The contrast between the harsh environment and the colorful Soviet-style buildings is striking.
Day 15: Sainshand, Mongolia - Gobi Caves
108 Meditation Caves
Explore the nearby caves where monks used to meditate for months at a time. It is a quiet, powerful site in the middle of the desert.
Dinosaur Bone Hunting
While you shouldn't take anything, the area around Sainshand is famous for fossils. Just walking the desert floor can reveal ancient geological wonders.
Bell of Wishes
Visit the massive bell at the monastery and ring it for good luck, a common local tradition that is free for all.
Board Return Train
Catch the night train back toward Ulaanbaatar, completing your loop of the Gobi.
Day 16: Ulaanbaatar, Mongolia - Final City Day
Return Arrival to UB
Drop your bags at your hostel for one final day in the capital. Spend the morning at a local coffee shop to recharge.
Cheap Eats at Food Courts
Head to the food court in the 'E-Mart' or 'State Department Store' for high-quality, low-cost international and local options.
Bogd Khaan Winter Palace
The former residence of Mongolia's last king. It's a complex of temples and a Russian-style house filled with royal eccentricities.
Farewell Dinner
Find a 'Modern Nomads' or a similar local chain for a slightly nicer but still affordable final Mongolian feast.
Day 17: Ulaanbaatar, Mongolia - Departure
Last Minute Souvenirs
Visit the 'Mary & Martha' fair trade shop or the local markets for felt slippers or cashmere socks at much better prices than the airport.
Choijin Lama Temple Grounds
Spend your last hour in the quiet gardens of the temple, reflecting on your 17-day journey across the steppes.
Airport Bus Transfer
Take the official airport shuttle bus from the city center to the new airport. It is reliable and fits the budget backpacker lifestyle.
Departure
Check in for your flight, carrying memories of an epic, budget-friendly Mongolian adventure.
Best Time to Visit Mongolia
The absolute best time to visit Mongolia is during the summer months, specifically from June to late August. During this window, the weather is pleasant, and the vast landscapes are at their greenest. If you want to experience the Naadam Festival, the biggest celebration of the year featuring wrestling, archery, and horse racing, you must be in the country between July 11th and 13th. Avoid winter (November to March) unless you are prepared for extreme temperatures that regularly drop below -30°C.
Currency & Money
The local currency is the Mongolian Togrog (MNT). While Ulaanbaatar is becoming increasingly card-friendly, cash is absolutely essential once you leave the capital or shop at local markets like Narantuul. ATMs are widely available in UB, Erdenet, and Darkhan, but can be scarce in smaller towns. Tipping is not a traditional part of Mongolian culture, though rounding up the bill in city restaurants is appreciated.
Getting Around Mongolia
For the budget traveler, the domestic train system is the most cost-effective way to cover long distances, particularly the north-south line connecting Russia to China. For areas not served by rail, public intercity buses and 'mikros' (minivans) depart from the Dragon Bus Terminal or the Eastern Bus Terminal in UB. These are incredibly cheap but often wait until they are completely full before departing. Within Ulaanbaatar, the public bus system is extensive and costs only a few hundred Togrog per ride.