Baganuur is a distanced district, located as an exclave of 620 square kilometres (239 sq mi) on the border between the Töv and Khentii aimags.

It was created as a Soviet army base for the 12th Motor Rifle Division.

Due to high operation cost, Mongolian Railway had stopped passenger service on the Ulaanbaatar-Baganuur-Ulaanbaatar, although freight trains still normally transport coal to Ulaanbaatar and other neighbouring towns.

On December 31, 2007, Baganuur became the center of a massive methanol poisoning case that stemmed from substandard production methods of a local vodka manufacturer.

This case led to a complete ban of vodka sales in Ulaanbaatar for several days, and also highlighted one of Mongolia's food safety problems.