Mongolia In Bogd khaan’s Era

Russian policy initially sought to preserve Mongolian autonomy from China but did not support Mongolian independence, in order to maintain Russia China relations and not alarm Japan. After 1917, the Soviet Union did eventually support Mongolian independence but was not firm in this support. China, on the other hand, persistently attempted to absorb Mongolia into the new Chinese nation-state. During this period, there are several attempts to prove the Mongolian Independence such as Treaty of Hiagt and Mongolian military force headed by Damdiny Suhbaatar. 

On November 30, 1911, the Mongols established the Temporary Government of Khalkha. Bogd Khaanate of Mongolia proclaimed its independence on 29 December 1911 from the collapsing Qing Empire.  They installed as theocratic sovereign the 8th Bogd Gegeen, highest authority of Tibetan Buddhism in Mongolia, who took the title Bogd Khaan or "Holy Ruler". The Bogd Khaan was last khagan of Mongolia. This ushered in the period of "Theocratic Mongolia", also known as the Bogd Khaanate.
One of the first acts of the Bogd Khan was to order the confiscation of the Manchu emperor’s livestock, which was shared out among the Mongol nobilityand high lamas. Bogd Khaan Government, consisting of five ministries (internal affairs, foreign affairs, military affairs, finance, and judicial affairs). This was three days before the establishment of the Republic of China, which later served as an important rationale in justifying the Mongolia’s independence.
The Republic of China was proclaimed in 1912. 
Three historical currents were at work during this period. The first was the efforts of the Mongolians to form an independent, theocratic state that embraced Inner Mongolia, Barga (also known as Hulunbuir), Upper Mongolia, Western Mongolia and Tannu Uriankhai ("pan-Mongolia"). The second was the Russian Empire's determination to achieve the twin goals of establishing its own preeminence in the country but at the same time ensuring Mongolia's autonomy within the newly independent Chinese state. The third was the ultimate success of China in eliminating Mongolian autonomy and creating its sovereignty over the country.
At the “Treaty of Hiagt” in 1915 between Russia, China and Mongolia, the latter was forced to accept a rather tortured status of “autonomy under chinese suzerainty”.
Chinese government still considered “Outer Mongolia” as a part of it and invaded the country in 1919. Backed by Russian communist agents, underground resistance networks of middle-class intellectual formed, including what would become the Mongolian People’s Revolutionary Party, the country’s Communist party, in June 1920. They approached the Soviets for help in defeating the occupying Chinese but were stalled. The large Red Army force crossed the northern border where they joined a small Mongolian military force headed by Damdiny Suhbaatar and advanced on Ih Huree, where they installed a new goernment on 11 July, now celebrated as Mongolia’s National Day. 
In May 1924, the Bogd Khaan died and orders were issued banning the reincarnation of a Javzandamba to lead Mongolian Buddhism. Mongolia’s ties with Soviet Russia were strengthened and the Mongolian People’s Party was renamed the Mongolian People’s Revolutionary Party. 
 If you are more interested in about Bogd khaan you can visit the “Bogd Khaan’s Palace museum” in Ulaanbaatar city.  The Bogd Khaan’s Palace museum was built between 1889 and 1906. The museum consists of 10 buddhist temples and the winter house of the Bogd Khaan. Bogd Khaan lived in this house for more than 20 years with his Queen Dondogdulam. Inside the home is the Bogd Khaan’s ornamental ger, covered with skins of many snowleopards. Since 1926 the Palace has served as a museum.