The Mongol Empire invaded Bulgaria in 1242. This weakened the kingdom and it began losing territory to its neighbors. Diplomatic relations between the two countries were first initiated on 22 April 1950. Due to the similar ideological situation in both countries, their relations witnessed a steady development up until the 1990s.
Until the beginning of the 1990s Bulgaria was Mongolia's 3rd biggest trading partner. Agricultural products and light industry goods were the main exports. Due to the subsequent economical and political changes in both countries the volume of trade shrank considerably. The volume of trade between Bulgaria and Mongolia totaled $2 million for 2008, with the main exporter being Bulgaria.