In a world where authoritarian states are taking a bigger place in the global arena, it’s important to learn from democracies and how a strong democracy can be upheld. The objective of this essay is to explain how Mongolia, a country with two giant authoritarian geographical neighbors in China and Russia still upholds a strong consolidated democracy. How did Mongolia develop from a history of communism to a free open country? This essay aims to explain Mongolia’s democratization after the collapse of the USSR in 1990 through the national internal factors of Larry Diamonds democratization theory; the development of authoritarian fragmentation and the development of civil society. The result illustrates that the development of authoritarian fragmentation led to competition between the elites, hard-liners vs soft-liners which in turn turned out in liberalization improvements. While the outcome of the development of civil society led to mobilization, protests and manifestations towards change and NGO’s got established which in turn lead to liberal reforms and economic improvement. The conclusion of the essay argues that the development of authoritarian fragmentation and civil society played a big role in Mongolia’s democratization in the 1990s.