The office of Prime Minister was established in 1912, shortly after Mongolia first declared independence from the Manchu Qing Dynasty.

There is some confusion as to the first holder of the office. A lama named Tseren (or Tserenchimed) held office as 'Prime Minister' during a provisional government, and is sometimes cited as the first holder of the modern office. However, the current Mongolian government considers T繹gs-Ochiryn Namnans羹ren, the first formal office-holder, to be the first.