From 1998, he was a member of the Federation Council, serving as Deputy Chairman of the Committee on Foreign Affairs.

In December 2001, he resigned as a member of the council, then was elected as a deputy of the Great Khural of the Tuva Republic of the third convocation.

On 17 March 2002, he ran for the post of the Head of the Republic — Chairman of the Government with 22% of the votes, but lost to the former President of Tuva Sherig-ool Oorzhak (53%).

One of Sholban Kara-ool's first steps in this position was to fully rehabilitate the founder of Tuvan People's Republic, Mongush Buyan-Badyrgy.

On 7 April 2021, President Vladimir Putin accepted his resignation at his own request from the post of Head of the Tuva Republic.