Abstract: This article explores the modern period in Mongolia-Russia relations. This period starts in the 1990s, when the countries shifted from the socialist path of development and planned economy towards democracy and market economy. Along the way, a decline in the relations turned into a comprehensive strategic partnership. The goal of this research consists in identification of the problems that impeded effective and mutually beneficial bilateral relations, as well as in analysis of the current state and prospects of these relations in the primary areas of cooperation. The author comes to the conclusion that at the present stage Mongolia-Russia relations have traveled the journey from a decline to comprehensive strategic partnership, which is substantiated by active political dialogue between the countries’ leaders; however, the problems remain in trade and economic relations, caused by the absence of initiative from the diplomatic mission of the two countries, noncompliance with agreements, berries and restrictions in the movement of goods. etc. Solution of the aforementioned problems is crucial for fruitful and dynamic development of bilateral relations, and would open prospects for long-term and mutually beneficial cooperation.