The name "Chagan" is from Mongolian (ᠴᠠᠭᠠᠨᠨᠠᠭᠤᠷ, transliteration : Chaɣan naɣur, Cyrillic mongolian : цагаан нуур, transliteration MNS : tsagaan nuur), meaning white / pure lake (see also Chagan River re.

The lake is known for its traditional winter fishing, featuring a technique which dates back to prehistoric times.

[citation needed] Chagan Lake is the only place in which the oldest of Mongolian fishing methods is preserved.

The annual Winter Fishing Festival is held to keep this ancient tradition alive.

The net and its catch is then hauled out of the largest hole by means of a capstan (see also Whim (mining)) turned by Mongolian horses.