Since the early 1990s, the system of education in Mongolia has gone through radical changes that stem from the country's transition to the market economy and the democratic state structure. Favorable prerequisites were already in place to renovate education on democratic principles, because during the period of its socialist development Mongolia achieved impressive successes in that sphere. In this article, the author discusses the major difficulties and achievements of the reform of education in Mongolia. As a whole, Mongolia has surmounted many difficulties and is in the process of creating a new system of education that is oriented toward the demands of the market and international educational standards. Consequently, state structures, scientists, and educators have a lot of work to do to improve the quality of the education and to bring it in line with the needs of society. Conclusions that Russia can draw from the experience of education reform in Mongolia include: (1) Fundamental, qualitative changes in the sphere of education can not be accomplished without adequate foundations of economic and social character; (2) Educational reform must be accomplished by drawing upon the achievements of previous years, and by integrating established educational traditions and innovations that have been made necessary by the demands of the times; (3) Stiff competition in the international market of educational services makes it essential to increase the state's role in the sphere of education; and (4) Russia will need to be more actively involved in the process of internationalization of education and revive its effective experience of international cooperation in this sphere.