Formal bilateral relations between Mongolia and Yugoslavia were established on 20 November 1956.

[1] This was the period of normalization of Yugoslav relations with other Eastern Bloc countries which were either suspended or significantly strained after the 1948 Tito-Stalin split.

During the Cold War period Mongolia closely followed Soviet Union in its policies towards Yugoslavia.

[3] Yugoslav delegation was led by President of Yugoslavia Josip Broz Tito.

[1] Normalization of relations between Soviet Union and Yugoslavia in 1953 after Stalin's death and Belgrade declaration resulted in Vyacheslav Molotov's expellsion from the Presidium after which he was made ambassador to the Mongolian People's Republic.