At the Sixth Party Congress in early 1927 he was re-elected Chairman of the MRYL and a member of the MPRP Central Committee.

The Central Committee elected him as a member of the MPRP Presidium and he was then chosen as its Chairman, making him titular head of state of Mongolian People's Republic.

Soviet advisers arranged for Damdinsüren to be replaced by the more pliable Khorloogiin Choibalsan, who was "kicked upstairs" to be Chairman of the Little Hural.

During the collectivization campaigns of 1930–1931, he returned to Zavkhan Province where he took up position as secretary of the commune and the director of a collective farm.

In 1938 Damdinsüren was accused of counterrevolutionary activity during Khorloogiin Choibalsan's Great Terror (1937-1939) and shortly thereafter he was executed.