He served as chief abbot of the Manjusri Monastery and later was the last acting prime minister of Outer Mongolia during Baron Ungern von Sternberg's occupation of Ikh Khŭree from May to July 1921.

In February 1921, Tserendorj safeguarded the Bogd Khan at Manjusri Monastery as forces loyal to the Baron Ungern von Sternberg drove occupying Chinese troops from Ikh Khŭree.

He once again took up his duties as chief abbot of Manjushri Monastery and maintained contact with a severely weakened (both physically and politically) Bogd Khan.

In 1922 Tserendorj and the Bogd Khan supported a secret mission to contact the Japanese Emperor to request help against the increasing persecution of the Buddhist Church by the new government.

After a show trial that lasted nearly a year, Tserendorj was found guilty and executed in front of the Public Theater in early October, 1937.