The early 20th century was a period of significant sociopolitical upheaval in Asia, with the Qing dynasty facing mounting internal and external challenges. Amidst this turmoil, a wave of nationalism surged within Mongolia, fueled by desires for independence and self-determination. Following the Xinhai Revolution in China, which led to the fall of the Qing dynasty, Mongolian leaders seized the opportunity to proclaim their independence, reflecting a longing for sovereignty among the Mongolian populace. On December 29, 1911, the Mongolian National Assembly convened, formally declaring Mongolia's independence from Qing rule.

The gathering in Urga, where the enthronement of the 8th Jebtsundamba Khutughtu, also known as Bogdo Jamyang Luvsanjamts, took place, was significant. The Jebtsundamba was not only a political figure but also a spiritual leader, seen by many as a reincarnation of the Buddha. His anointment as Khagan symbolized the unification of Mongolian spiritual and temporal authority, a critical factor in solidifying national identity. This dual role was pivotal as it helped garner support from the populace and legitimized the new governance structure.

Following formal recognition from Russia and other neighboring states, the event catalyzed a series of efforts to establish a more organized government and military in Mongolia, ultimately leading to the formation of the Mongolian People's Republic in 1924. The proclamation of independence underscored the decline of Qing authority, setting the stage for Mongolia's future interactions with foreign powers and internal governance systems. The event is often viewed as a stepping stone toward democratic aspirations and self-rule that characterized modern Mongolian history.