The Mongolian People's Party (MPP) has won a crucial victory in the parliamentary elections and returned to power after a four-year gap.
The national election commission said MPP won 65 out of 76 seats in the national legislature, which is known as the State Grand Khural.
The ruling Democratic Party got only nine seats while other smaller parties won two seats.
MPP had ruled Mongolia for 70 years before the country took a major transition to democracy and a free market economy followed by the collapse of the former Soviet Union.
"The Mongolian people have put their trust in the MPP," party chairman Enkhbold Miegombo said in a speech early Thursday. He added: "We understand there is a huge responsibility behind this trust. We will work hard to improve the current economic situation and falling reputation of Mongolia in the international arena."
Enkhbold Zandaakhuu, speaker of the parliament and head of the Democratic Party, said the Mongolian people have made their choice and they respect this decision.
Before the election, both the parties focused on economic development and other important factors including improving the country's educational and healthcare systems. They had also expressed their concerns regarding the weakened economy.
In 2011, Mongolia's economy was booming ahead at 17.5 percent but suddenly in 2015, the rate slowed down at only 2.3 percent, leaving one-fifth population of the country in poverty. However, the International Monetary Fund has predicted 0.4 percent growth in 2016.
Coal, copper and other mineral resources make up 94 percent of Mongolia's exports and this slump has hit the economy especially its mining sector.