All You Need to Shop in Ulaanbaatar (2025): Markets, Malls & Money-Saving Tips - Xplrverse

Introduction to Shopping in Ulaanbaatar

When I first landed at Chinggis Khaan International Airport back in 2019, I had no idea what to expect from Mongolia’s shopping scene. Fast forward several visits later, and I’ve gone from accidentally overpaying 30,000₮ for a cashmere scarf at the State Department Store (rookie mistake!) to knowing exactly which hidden markets offer the best deals on everything from traditional crafts to modern electronics.

Ulaanbaatar (ULN) might not immediately spring to mind as a shopping destination, but this vibrant capital is home to an incredible mix of traditional markets, contemporary malls, and unique boutiques that reflect Mongolia’s fascinating blend of nomadic heritage and rapid modernization. Whether you’re hunting for authentic cashmere, handcrafted leather goods, or modern necessities, this guide will take you through all you need to shop confidently in UB (as locals affectionately call it).

The shopping landscape in Ulaanbaatar has evolved dramatically since the pandemic, with new developments, changing prices, and shifting consumer behaviors. This comprehensive 2025 guide covers everything from traditional markets to luxury malls, bargaining etiquette to tax refunds, and plenty of money-saving tricks I’ve learned the hard way.

Understanding Mongolian Currency and Payment Methods

Before diving into where to shop, let’s talk money. Mongolia uses the tögrög (₮), often abbreviated as MNT. As of early 2025, 1 USD is approximately 3,400₮, but exchange rates fluctuate, so I recommend checking current rates before your trip.

Cash or Card?

While Ulaanbaatar has become increasingly card-friendly since the pandemic, I still recommend carrying cash, especially for traditional markets and smaller shops. Here’s what you need to know:

Major malls and department stores: Accept international credit cards (Visa and Mastercard primarily)
Traditional markets: Predominantly cash-only
Mobile payments: QR-based payments through apps like QPay are becoming common, but typically require a local bank account
ATMs: Widely available in central UB, with most offering English interfaces

Insider Tip: The TDB (Trade and Development Bank) and Golomt Bank ATMs typically offer the best exchange rates and lower fees for foreign cards. I personally avoid ATMs in hotels as they often charge hefty fees.

Where to Exchange Money

For the best rates, avoid airport exchanges and instead use:

Banks in the city center: Golomt, TDB, and Khan Bank offer competitive rates
Currency exchange booths: Those located near the State Department Store often have slightly better rates than banks
Major hotels: Convenient but typically offer worse rates

Always count your money immediately after exchange and keep your receipt – I once received 50,000₮ less than I should have but couldn’t prove it without the receipt I’d carelessly pocketed!

Traditional Markets in Ulaanbaatar

Traditional markets remain my favorite places to shop in UB. They’re chaotic, authentic, and offer the best prices if you know how to navigate them.

Naran Tuul (Black Market)

Despite its ominous nickname, Naran Tuul is a perfectly legal, sprawling market that sells almost everything. Reopened in a new location in early 2023 after a major fire, it’s more organized but still maintains its distinctive character.

What to buy: Traditional Mongolian clothing (dels), leather goods, horse riding equipment, everyday clothing, smartphones, and electronics

Opening hours: 9:00 AM – 6:00 PM (closed Mondays)

How to get there: Take bus #7, #22, or #59 from the city center, or a taxi will cost around 10,000-15,000₮ from central UB.

Money-Saving Insider Tip: Prices at Naran Tuul increase during the tourist season (June-August) and decrease during winter. If you’re visiting in winter, you’ll save up to 40% on similar items compared to summer prices. Also, visit on weekdays before noon when the market is less crowded and vendors are more willing to negotiate.

Khar Zakh (Kharkhorin Market)

Located in the Khan-Uul district, this smaller but more manageable market specializes in local foods, traditional medicines, and countryside products. I discovered it by chance during my second visit to UB and now make it a point to visit every time.

What to buy: Herbs, traditional medicines, dried dairy products (aaruul), countryside honey, locally grown vegetables, and preserved foods

Best finds: The white dried curd (aaruul) comes in dozens of varieties. My favorite is the slightly sweetened version with sea buckthorn, which costs around 8,000-10,000₮ for a small bag.

Bargaining Etiquette

Bargaining is expected in traditional markets, but there’s a proper way to do it:

Always be respectful – harsh bargaining tactics don’t work well in Mongolia
Start by offering about 60-70% of the asking price
Use the phrase “Үнэ хямдруулж болох уу?” (Üne hyamdruulj bolokh uu?) meaning “Can you discount the price?”
Walking away often brings a better offer, but only do this if you’re genuinely willing to lose the item
Buying multiple items from the same vendor typically earns you a better discount

I once spent 15 minutes haggling over a beautiful leather bag at Naran Tuul, starting from 85,000₮ and eventually agreeing on 55,000₮. When I returned the next day to the same stall to buy gifts for friends, the vendor recognized me and immediately offered better prices without my having to ask!

Modern Shopping Malls and Department Stores

If traditional markets aren’t your thing, Ulaanbaatar boasts several world-class shopping malls that rival those found in Seoul or Tokyo.

State Department Store (Ikh Delguur)

The iconic State Department Store on Peace Avenue remains a must-visit, having undergone significant renovations in 2024. Originally built during the socialist era, it now houses a mix of international brands and local products across its six floors.

What to buy: Cashmere products, souvenirs, traditional crafts, and international brands

Best for: One-stop shopping with fixed prices and quality assurance

Highlight: The 5th floor houses the largest selection of quality Mongolian cashmere in the city

Money-Saving Insider Tip: The State Department Store runs sales coinciding with Mongolian holidays. Shop during Tsagaan Sar (Lunar New Year, typically in February) or Naadam Festival (July 11-13) for discounts of 15-30% on many items including cashmere.

Central Tower Mall

Located in the heart of Sukhbaatar Square, this upscale mall houses luxury brands and high-end local boutiques.

What to find: International luxury brands, premium Mongolian cashmere, designer boutiques

Shangri-La Mall

Part of the Shangri-La complex, this is Ulaanbaatar’s most luxurious shopping destination, with high-end international brands and exclusive boutiques.

What to find: Luxury fashion, premium electronics, upscale dining options

Hunnu Mall

Opened in 2019 and expanded in 2023, Hunnu Mall is now the largest shopping center in Mongolia. Located slightly outside the city center in Khan-Uul district, it’s worth the trip for its extensive offerings and entertainment options.

What to find: Mid-range international brands, a massive food court, cinema, and family entertainment center

Getting there: Bus #22 from the city center or a taxi (approximately 12,000-15,000₮ from Sukhbaatar Square)

Mall Name	Price Range	Best For	Location
State Department Store	Medium to High	Cashmere, souvenirs, general shopping	Central (Peace Avenue)
Central Tower	High to Luxury	Designer brands, high-end local products	Sukhbaatar Square
Shangri-La Mall	Luxury	International luxury brands	Olympic Street
Hunnu Mall	Low to Medium	Family shopping, entertainment	Khan-Uul District
Naran Mall	Low to Medium	Electronics, everyday items	Bayanzurkh District

What to Buy in Ulaanbaatar

Mongolia offers unique products you won’t find elsewhere. Here’s what I recommend seeking out:

Cashmere and Wool Products

Mongolia produces some of the world’s finest cashmere. The quality is exceptional due to the harsh climate that causes goats to develop extremely fine, warm undercoats.

Where to Buy Quality Cashmere

Not all “100% cashmere” products are created equal. I’ve learned to shop at these reliable sources:

Gobi Cashmere – Mongolia’s oldest and most respected cashmere brand
Goyo Cashmere – Excellent quality with more contemporary designs
Oyun Cashmere – Boutique brand with unique designs
State Department Store (5th floor) – Wide selection from multiple brands

Price ranges for 2025:

Basic cashmere scarf: 80,000-120,000₮
Cashmere sweater: 180,000-350,000₮
Cashmere blanket: 400,000-1,200,000₮

Insider Tip: If buying cashmere from markets rather than established stores, perform the “burn test” to verify authenticity. Ask for a few fibers and burn them – real cashmere smells like burning hair and turns to ash, while synthetic fibers melt into plastic. Also, genuine cashmere should feel extremely soft and warm but never itchy.

Traditional Crafts and Souvenirs

Mongolia’s craftsmanship tradition dates back centuries. Look for:

Leather Goods

Mongolian leather products are durable and often beautifully decorated.

Where to buy: Naran Tuul Market, Ganbat Leather Arts (my personal favorite in the Zaisan area), and the Mongolian Felt and Leather Craft Shop near Sukhbaatar Square

Felt Products

Traditional felt slippers, toys, and decorations make perfect lightweight souvenirs.

Where to buy: Khan Bogd Craft shop, Mary & Martha Shop near the State Department Store

Musical Instruments

Consider a miniature morin khuur (horse-head fiddle) or a jaw harp.

Where to buy: UB Music Store near the State Circus, souvenir shops around Sukhbaatar Square

Antiques and Vintage Items

Mongolia has fascinating relics from its Soviet past and nomadic history, but be cautious:

Important: Mongolian law prohibits exporting antiques over 60 years old, religious artifacts, or historical items. Stick to modern reproductions or items with proper documentation.

Where to browse: Antique shops along Seoul Street and in the 3rd/4th microdistrict

Specialty Shopping Areas in Ulaanbaatar

Beyond malls and markets, Ulaanbaatar has several neighborhoods specializing in specific goods:

Electronics and Gadgets

The hi-tech market scene has changed dramatically since the pandemic, with much moving online.

Best places for electronics:

Bars Market: The remaining physical hub for electronics, located near the train station
IT Park Mall: Newer complex focusing on computers and accessories
Unegui.mn: Mongolia’s version of Craigslist for second-hand electronics

Expect prices for electronics to be 15-20% higher than in the US or Europe due to import taxes.

Books and Stationery

If you’re a bibliophile like me, check out:

Internom Bookstore: Mongolia’s largest chain with branches in most malls
Librairie Papillon: French-run bookstore with excellent English-language selection
Book World: Great for Mongolian literature with English translations

Handmade and Artisanal Products

For unique, ethical souvenirs that support local artists:

Mongolian Quilting Center: Beautiful handmade quilts with traditional designs
Tsagaan Chuluut: Contemporary Mongolian design products
Atelier Ulaanbaatar: Artist collective with unique works

Sustainable and Ethical Shopping in UB

Mongolia faces significant environmental challenges, from air pollution in UB to desertification in the countryside. Supporting sustainable brands not only helps the environment but often saves you money in the long run.

Sustainable Fashion

Several Mongolian brands focus on sustainability:

Hati Giroo: Upcycled clothing from traditional materials
Muushig: Eco-friendly clothing with traditional elements
Goyo Cashmere: Sustainable cashmere production and fair trade practices

Second-hand and Vintage Shopping

One of my money-saving discoveries was UB’s excellent second-hand scene!

Container Market: Near the Circus, this collection of shipping containers houses dozens of second-hand clothing shops with items from Korea, Japan, and Europe
Sunday Flea Market: Behind the Circus (summers only) for vintage items and curiosities
UB Thrift Finds: Facebook group where locals sell pre-loved items

Money-Saving Insider Tip: The Container Market follows a predictable pricing cycle. New shipments arrive on Mondays with higher prices, but by Thursday/Friday, prices drop significantly as vendors prepare for new inventory. I’ve found brand-name winter coats for as little as 25,000₮ (about $7) by shopping on Friday afternoons!

Navigating Tax Refunds and Customs

Mongolia introduced a VAT refund scheme for tourists in 2022, but it remains somewhat complicated.

VAT Refund Basics

Tourists can claim a 10% VAT refund on purchases over 500,000₮ from participating retailers
You must request a special receipt at the time of purchase
Refunds are processed at the airport before departure
Items must be unused and shown to customs officials

In my experience, only larger stores like Gobi Cashmere and the State Department Store reliably participate in the program. The refund process at the airport can take 20-30 minutes, so arrive early for your flight if you’re planning to claim.

Customs Considerations

When leaving Mongolia, be aware of customs regulations:

Antiques over 60 years old cannot be exported
Religious artifacts require special permits
Raw cashmere exports are restricted
Declare any purchases valued over $1,000

I almost had a beautiful antique-style Mongolian knife confiscated because it resembled a historical artifact, even though it was actually a modern reproduction. Having the receipt from the artisan shop saved me!

Seasonal Shopping Guide

When you shop can be as important as where you shop in UB:

Summer Shopping (June-August)

The tourist high season means:

Higher prices at markets and tourist-focused shops
More variety and stock availability
Extended opening hours
Outdoor markets and fairs (especially around Naadam Festival)

Winter Shopping (November-March)

The off-season offers:

Significantly lower prices (especially for winter gear)
Fewer crowds and more attentive service
Limited selection in some tourist-oriented shops
Amazing deals on cashmere and wool products

My favorite time to shop in UB is actually February, right after Tsagaan Sar (Lunar New Year). The traditional markets are full of beautiful decorations at clearance prices, and winter gear is often discounted by 40-50% as shops prepare for spring.

Sales and Special Events

Mongolia’s major shopping events include:

Lunar New Year sales: 2-3 weeks before and after Tsagaan Sar (February in 2025)
Naadam Festival markets: July 10-15
Black Friday: Now observed by major malls in late November
Winter sales: January-February for the deepest discounts on winter items

Conclusion: Your 5-Step Action Plan for Shopping in Ulaanbaatar

Shopping in Ulaanbaatar offers a fascinating blend of traditional and modern experiences. From the chaotic energy of Naran Tuul Market to the sophisticated atmosphere of Shangri-La Mall, there’s something for every taste and budget.

Your 5-Step Shopping Action Plan

Prepare your finances: Bring a mix of cash and cards, exchange money at banks or reputable exchange offices in the city center rather than the airport
Start with observation: Spend your first day visiting different shopping venues without buying, noting prices and quality to get a baseline
Prioritize unique items: Focus your budget on things you can’t get elsewhere – genuine cashmere, handcrafted leather goods, and traditional crafts
Bargain respectfully: At markets, negotiate with a smile and be prepared to walk away, but also know when you’ve found a fair price
Save receipts and packaging: Keep everything organized for potential VAT refunds and customs clearance at departure

My first shopping expedition in Mongolia was a series of mistakes – overpaying, buying poor quality “cashmere” that was mostly synthetic, and nearly missing my flight because I hadn’t factored in time for VAT refunds. Learn from my mistakes and you’ll have a much smoother experience!

Remember that beyond the items you purchase, shopping in Ulaanbaatar is about cultural immersion. Take time to chat with vendors, ask about the stories behind handcrafted items, and savor the unique atmosphere of this dynamic city where nomadic traditions and modern commerce coexist in fascinating ways.

Safe travels and happy shopping in the Land of the Eternal Blue Sky!

Frequently Asked Questions

Is shopping in Ulaanbaatar expensive?

Shopping in Ulaanbaatar offers a wide range of price points. Luxury malls like Shangri-La are comparable to international prices, while traditional markets offer excellent value. Local products like cashmere are significantly cheaper than in Western countries (40-60% less), but imported goods typically cost 15-30% more due to import taxes. Electronics are generally more expensive than in the US or Europe.

Is it safe to use credit cards in Mongolia?

Yes, it’s generally safe to use credit cards at established businesses in Ulaanbaatar. Major hotels, department stores, and restaurants accept international cards. However, I recommend informing your bank about your travel plans to prevent your card from being blocked for suspicious activity. Also, always have some cash as backup, especially if you plan to visit traditional markets or travel outside the capital.

What are the best souvenirs to buy in Mongolia?

The best souvenirs include cashmere products (scarves, sweaters), traditional crafts (felt slippers, leather goods), miniature gers (traditional dwellings), horse-head fiddles (morin khuur), and artwork depicting Mongolian landscapes or nomadic life. For food souvenirs, consider sea buckthorn products, Mongolian vodka, or airag candy (based on fermented mare’s milk) if you’re feeling adventurous.

How can I tell if cashmere is authentic?

To verify authentic cashmere: 1) Feel the texture – real cashmere is extremely soft without being slippery; 2) Do the ring test – authentic cashmere scarves can be pulled through a ring; 3) Check warmth – cashmere is very warm despite being lightweight; 4) Examine the price – if it seems too good to be true, it probably is; 5) Buy from reputable sources like established brands (Gobi, Goyo) rather than unmarked market stalls without verifiable sourcing.

What are typical shopping hours in Ulaanbaatar?

Shopping hours vary by venue. Modern malls typically open from 10:00 AM to 10:00 PM daily. The State Department Store operates from 10:00 AM to 9:00 PM. Traditional markets generally run from 9:00 AM to 6:00 PM and may close one day per week (often Monday). Many small shops close for lunch between 1:00-2:00 PM. Most venues have reduced hours on Sundays.

Is bargaining accepted in Mongolia?

Bargaining is expected in traditional markets and with street vendors but not in established stores or malls where prices are fixed. When bargaining, maintain a friendly, respectful approach – aggressive tactics aren’t well-received. Starting at about 60-70% of the asking price is customary. Using a few Mongolian phrases can help, such as “Үнэ хямдруулж болох уу?” (Can you discount the price?).

What’s the best area to stay for shopping in Ulaanbaatar?

The area around Sukhbaatar Square and Peace Avenue offers the best access to shopping. From here, you’re within walking distance of the State Department Store, Central Tower Mall, several cashmere shops, and numerous boutiques. It’s also convenient for taxis to Naran Tuul Market. The Shangri-La complex area is another good option, with luxury shopping on-site and good connections to other areas.

Can I ship purchases home from Mongolia?

Yes, international shipping is available through Mongolian Post and private carriers like DHL and FedEx. However, shipping costs can be high, and delivery times vary significantly. For valuable items like cashmere or artwork, I recommend using DHL or FedEx despite the higher cost. Most major cashmere retailers offer international shipping services as well, which can be more reliable than arranging it yourself.