This study assesses Mongolian democratic system's ability to overcome some of the most significant political challenges in the past thirty years of democratization. It is based on the notion of "democratic persistence" and tries to answer the question why the establishment of democracy was more successful than in some other democracies of the Third Wave. It argues that favorable institutional, structural, and agency factors were the main contributors, while unfavorable external and historical factors were of a lesser significance. Overall, it concludes that to date the system adapted to challenges quite well, but the outlook is worrying. As numerous challenges continue to accumulate, the current political elite is not incentivized to implement further reforms to improve the political system. Therefore, in the foreseeable future we might expect more of the political stagnation rather than improvement in the quality of democracy.