The diplomatic relations between the two countries was established on July 1, 1963, thus making the Republic of Austria the second Western country that established diplomatic ties with Mongolia.
On February 10, 2003 the Mongolian Embassy was opened up in Vienna, and Austria has been accrediting its Ambassadors to Mongolia from Beijing since 1993. The bilateral relation between Mongolia and Austria has been intensifying in recent years. For instance, in 2001 the Austrian Vice-Minister for Economy and Labour, in 2002 Chairman of the Austrian National Assembly, in 2003 and 2004 the Austrian Federal Minister for Education, Science and Culture paid visit to Mongolia. From the Mongolian side, in 2003 the President of Mongolia and Minister of Health, in 2004 Minister of Environment, in 2005 the Chairman of the State Great Khural (Parliament), the Deputy Prime Minister the Minister for Fuel and Energy, in 2006 the Deputy Prime Minister, and in 2007 the Prime Minister of Mongolia paid visit to Austria. The trade relations between Mongolia and Austria started with the conclusion of the Agreement on Mutual Supply of Goods and Payment in 1963, the first-ever agreement on trade and economic cooperation that Mongolia concluded with Western countries. Moreover, in the field of economic cooperation, in 1992, the Agreement on External Economic Relations, in 2001 the Agreement on Investment Promotion and Protection, in 2003 the Agreement on Taxation of Income and Properties were concluded, respectively. In other sectors, the agreement such as Joint Communiqué on Cooperation in Health Sector as well as on Cooperation in the fields of Education, Science and Culture were concluded in 2003. In 2006 were concluded the agreement between the Government of Mongolia and Austrian Federal Government on mutual Recognition of equivalences in higher education, in 2007 Air transport agreement between the Government of Mongolia and the Austrian Federal Government, as well as the Memorandum of Understanding on bilateral co-operation in the field of agriculture between the Minister of Food and Agriculture of Mongolia and the Federal Minister of Agriculture, Forestry, Environment and Water Management of the Republic of Austria and also the Memorandum of Understanding on bilateral co-operation between the Minister of Nature and Environment of Mongolia and the Federal Minister of Agriculture, Forestry, Environment and Water management of the Republic of Austria for the Realisation of projects in the field of the clean development mechanism under article 12 of the Kyoto Protocol.
The bilateral trade turnover has been quite unstable. As of August 2007, the trade volume between the two countries was 2, 4 million USD. The statistic date of previous years were 2004-4,7 million USD, 2005- 1,002 million USD, 2006-1,607 million USD/. The first meeting of the Mongolian-Austrian Intergovernmental Joint Commission was held in 2003 and till present the Joint commission has met three times. The Government of Austria has been extending humanitarian assistance to Mongolia to mitigate the damage and consequences of natural disasters. The Performance of the Mozart's opera "Don Giovanni" has been given in 2004 for the first time on a stage of opera theatre of Mongolia.
The first contacts for further developing of the direct Partnership between Ulaanbaatar and Vienna, and also between two Provinces, such as Darkhan Uul Aimag in Mongolia and Niederösterreich in the Republic of Austria are established.