The capture of Mongolia by the Red Army marked a significant turning point in the political landscape of Central Asia. The leadership of the Bolshevik faction under the command of figures such as Mikhail Frunze was instrumental in this military campaign. The Red Army aimed to counteract the activities of the White Army, who were opposed to the Bolshevik revolution and sought to restore the old order in Russia and its borderlands. By utilizing guerilla warfare strategies and engaging local support, they successfully overthrew the existing government of Outer Mongolia, which was primarily backed by foreign powers, especially Japan.

In the months leading up to this event, Mongolia suffered from internal strife and external pressures, including the influence of the Qing dynasty and later Japanese incursions. The Red Army’s advance was proclaimed alongside a local uprising, leading to the declaration of the Mongolian People's Republic. This new government established a communist framework modeled after the Soviet Union, which reinforced Lenin's vision of spreading communist ideology across Asia.

The establishment of the Mongolian People's Republic was important for the Soviets, as they sought to create a buffer zone against potential threats from Japan and China. Furthermore, this event laid the foundation for Mongolia's political development in the 20th century. It facilitated the implementation of various land reforms and social policies, promoting literacy and industrialization, but also led to crackdowns on perceived enemies of the state.