The ancient capital of the Mongol Empire, back then known as Karakorum was located 350km away from the current capital Ulaanbaatar at the upper part of UNESCO World Heritage site Orkhon Valley. The most prominent historical site in Orkhon Valley is Kharkhorum, ancient capital of Mongol empire. Kharakhorum, founded in 1220 by Chinghis khan, was not only the capital of the vast Mongolian Empire, but the epic center of trade along Silk Road, and a cultural melting pot bridging east and west.  It was from there that the Mongol Empire governed and controlled through Asia and Eastern Europe for over 400 years. Craftsmen from Mongolia and abroad participated in the construction of the city. Highlight of construction in Kharakhorum occurred during the reign of Ogodei khan. At that time, the inhabtants of the city were mostly merchants and craftsmen who arrived to Kharakhorum from every corner of the world. Karakorum, which had a population of over 30,000, was attacked and burned by 100,000 Ming soldiers.

Later, the stone walls left on the remains of Karakorum were moved and the current Erdenezuu Monastery was built. In 1580, Abtai Sain Khan, together with his younger brother Tumenkjen, met with the III Dalai Lama and promised to build a temple in his own area. Following the recommendation of the III Dalai Lama to restore an old temple in the city of Karakorum, in 1586, he completed the reconstruction of the ancient temple in Takhai Balgas, which is the main hundred temple of the current Erdenezuu Monastery. It is written in a manuscript called Biography of the Zanabazar. Abtai Sain Khan is the son of Onokhui Uizen, predecessor of the third son of Genghis Khaan’s, Gersenz Jalair Khuntaij.

As of today, the town of Kharkhorin is located close to the site where the ancient capital was located. The Erdenezuu monastery still stands to this time despite challenging times XX century.