Mongolia is classified as a democratic republic. It transitioned to a multiparty democratic system in the early 1990s following the collapse of communist rule. The country has a parliamentary system of government, with a President as the head of state and a Prime Minister as the head of government. Mongolia holds regular elections, and various political parties participate in the democratic process.
However, like many democracies, it faces challenges, including issues related to governance, corruption, economic development, and political polarization. Overall, while Mongolia is a democracy, the quality and effectiveness of its democratic institutions and practices can vary.