At Altanbulag, also historically recognized as Maimachen, the Mongolian People's Army launched a decisive offensive against local Chinese forces. This conflict was rooted in Mongolia’s ongoing struggle against foreign domination, particularly in light of a power vacuum left by the Russian Civil War and the subsequent Chinese assertion of control. The battle, which took place in the Selenge region, was pivotal as it not only served to strengthen Mongolian nationalism but also laid the foundation for a new armed force dedicated to the cause of Mongolian independence.

The Mongolian People's Army, supported by Bolshevik Russia, sought to create a sovereign nation free from the influence of outside powers, especially China. The victory at Altanbulag was symbolic, marking not only a military success but also the formal establishment of the Mongolian People's Army as the union of various revolutionary factions. The clash effectively expelled Chinese military forces from Mongolia, setting the stage for the eventual declaration of the Mongolian People's Republic in the months that followed.

This battle is often considered the starting point for an organized military force in Mongolia, unifying various factions under a common goal of independence. The triumph at Altanbulag galvanized support for the People's Army and equipped them with the legitimacy needed to continue their campaign against foreign influence and domestic oppression, further entwining Mongolian identity with statehood.