The third neighbor policy is a facet of foreign relations of Mongolia referring to its building relationships with countries other than Russia and China,^[1] the two superpowers that historically had a sphere of influence extending to the country. The economy of Mongolia is dependent on exploitation of the country's mineral resources, which include copper, gold, uranium and coal,^[1] and thus the country is vulnerable to pressure from foreign countries and corporations involved in resource extraction. Countries that have been characterized as "third neighbors" include the United States, South Korea, France and other developed nations.

By building relationships with nations beyond its immediate neighbors, Mongolia aims to:

• Diversify its economy: Expanding partnerships with other countries reduces its reliance on China, which is its largest trading partner.
• Support democratic governance: Strengthening ties with democratic nations helps reinforce Mongolia's democratic values and institutions.
• Improve national security: Collaborating on defense with "third neighbors" such as the United States and Japan enhances Mongolia's security capabilities.^[2]

In mid-March 2018, president Khaltmaagiin Battulga appealed to U.S. President Donald Trump via telegram to more trade relations, saying an economic downturn threatened to destabilize Mongolia, and that although Mongolia is an "oasis of democracy", this "does not contribute to economic development" in a region where authoritarianism (China and Russia) in on the rise.^[3][4][5] The United States is one of Mongolia's Third Neighbors, which Battulga said that U.S. trade and investment could help prevent the return of authoritarian in Mongolia.

Another development occurred in 2023. Mongolian Prime Minister Luvsannamsrain Oyun-Erdene visited Washington DC on the invitation of US Vice President Kamala Harris in August 2023.^[6][7][8]

On the November 30th, 2023, the "Mongolia Third Neighbor Trade Act" was introduced in the U.S. Senate by Senator Dan Sullivan of Alaska.^[9] The bipartisan act was simultaneously introduced in the House of Representatives by Vern Buchanan of Florida and Dina Titus of Nevada.^[10] If approved, Mongolia’s high-quality cashmere and textiles could be exported to the United States duty-free.

On May 21, 2023, Emmanuel Macron visited Mongolia, the first ever visit to Mongolia by a French President.^[11]

As of 2019, bilateral trade between France and Mongolia remains limited. In 2017, bilateral trade stood at €26.1 million (€21.8 million of exports from France to Mongolia, against €4.3 million of import from Mongolia to France).^[12][13]

• Mongolia–Russia relations
• China – Mongolia relations

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