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The first master plan for developing Ulan Bator on a scientific basis was developed and implemented in the 1950s and since the 1960s urbanization policy plans have been determined and activities associated with urbanization, including the planting of gardens and trees and the provision of municipal improvements have been carried out. A major part of Ulan Bator's current appearance is a result of the large-scale construction activities carried out between 1960 and 1985 in the metropolis.

In the construction of its new districts, civil engineering buildings and structures, an immense contribution was made by construction organizations and workers from China in the period from the 1950s to 1960s and by the former USSR from the mid-1960s up to 1989. At that time the first and second 40 Myangats (residential areas), 120 Myangats, and residences in the current 1st, 3rd, 4th, 5th, 6th, 10* and 13th micro districts were built and service centres appeared.

At present, the master plan for developing Ulan Bator has been updated and the plan for the city's development up to 2020 has been passed and has begun to be carried out. The city of Ulan Bator is a unique city that manages despite the prevalence of modern buildings and structures to still preserve its places of historic and cultural value, most having been turned into museums and sightseeing places.

As part of its activities in 2003, Year of Investment and Creative works, the Ulan Bator City Council spent 94 billion tugrigs on construction. Projects included the completion of an eight-lane highway and the improvement of community services in ger districts. Sukhbaatar Square was also repaved with granite slabs. Sukhbaatar Square covers 31,068 square meters. The city, which had a population of around 50,000 people only ninety years ago, is now home to about 850,000.

When you include long-and short-term transit, foreign and national visitors this figure increases to nearly one million. Such a sharp rise in the population of the metropolis is associated with an increasing migration of rural residents to Ulan Bator. The majority of those migrating to the capital from the western provinces have to choose the settled way of life due to hardships (City Council) which has 40 representatives, 9 chairpersons, a permanent head, secretary and offices. The capital city's nine districts have their own Citizen's Representatives Khurals as well.

The capital city's highest executive power is vested in the Capital City Governor appointed from the Capital City Citizen's Representatives Khural, and the Ulaanbaatar city's mayor, his office and departments. According to the Constitution of Mongolia, the city of Ulan Bator is specified as "a city with specific functions, its power management, territory, economic and social complex, and special status set forth by the law". The city of Ulan Bator has established and maintains friendly relationships with many cities around the world including Seoul, Florence, Moscow and Denver.

Among the world's capital cities, Ulan Bator is notable as the capital city with the coldest climatic conditions. Following the instigation of the Law on the capital city's legal status, enacted by the State Ikh Khural in 1994, the capital city now has its own banner, coat of arms and emblem. Ulan Bator has its own boundaries approved by the State Ikh Khural. It covers an area of 4,704 square kilometers, with 9 districts and 115 khoroos (administrative units). The city's municipal administration system is the Capital City Khural of Citizen's Representatives