The city of Ulaanbaatar was founded in mid of the 17th century. The town lays on the southern end of the Khentii mountains in the valley of the Bogd mountain and between the rivers of Tuul and Selbe.

For historical reasons the city moved its location about 20 times since the establishment, only in 1778 it settled into its present location. Also the name of the city changed several times since establishment, the actual name Ulaanbaatar was given in 1924 after the revolution that ceased foreign rule over Mongolia and re-established the independence. The name Ulaanbaatar means the Red Hero.

Ulaanbaatar is located on an altitude of about 1350m above sea level.