This study shows the multifactorial process of formation of new communist and political elite in Mongolia in the 1920s and 30s during the hardest period of the struggle for sovereignty and the formation of true Mongolian state. The author focuses on the analysis of domestic political and foreign policy factors influencing the development of the basic principles and mechanisms of the formation of the Mongolian Communist Party’s and politics’ elite and its participation in the process of transformation of traditional Mongolian society based on the socialist modernisation model. The characteristics of the process of formation of the Mongolian communist and political elite from the very first revolutionary circles of Mongolia People’s Party to the fundamental measures of the country’s socialist reorganisation are given. Particular attention is paid to the formation of a “tactical alliance” at the initial stage of the revolutionary process, the internal political struggle in the ranks of the Mongolian communist and political elite in carrying out fundamental social changes and the transformation of Mongolian society in the period of the 1920s-40s. On the basis of archival material and taking into account the achievements of modern Russian and foreign historiography, problematic and key issues of Russian historiography of the process of formation of the political elite and the transformation of the socialist model of the socialist model in Mongolia in the 1920s-30s are considered. The author concluded that the period of the 1920s and 30s, the struggle between old and new social forces, the formation of a new communist and political elite unfolded against a very unique background characterised, on the one hand, by the desire for national unity, the revival of Mongolian statehood, and on the other hand, by the choice of the optimal model of social development in those historical conditions.