He entered a monastery at an early age, became a lama, and then started work as low level clerk in the office of the Shamzudba (the Secular Affairs Administration office) of the estates of the Bogd Khan Ikh Shav), quickly climbing his way up to become Da Lam (Chief Lama or Abbot).

[2] In July 1911 Tserenchimed was one of several high-ranking lamas and hereditary princes summoned to Khüree (present day Ulaanbaatar) by the Bogd Khan to discuss independence.

The Bogd Khan then named him a member of a delegation, along with Namnansüren, that traveled to Saint Petersburg to seek Czarist Russian and West European support for Mongolian independence from Chinese rule.

In November 1911 he was named head of General Administration Office of Khalkh Affairs in the provisional Mongolian government set up as Qing Dynasty collapsed in China.

The only commoner in Bogd Khan's government, he was then appointed interior minister in the first government of the newly established Autonomous Mongolia in early 1912, a position that was recognized as a de facto prime ministry, until the establishment in July 1912 of office of prime minister and appointment of Namnansüren to the position.