The first ever free and democratic multi-party election in Mongolia was conducted in July 1990 reforming the People's Great Hural. Thereon, amending the Constitution of the Mongolian People’s Republic, the State Baga Hural was formed as the highest governing and legislative body. Nevertheless, as the first permanent parliament of Mongolia. The State Baga Hural was established with the composition of 50 members, in which Mongolian People’s Revolutionary Party - 33, Mongolian Democratic Party - 13, Mongolian Social Democratic Party – 4, Mongolian National Progressive Party - 3 seats obtained respectively.

The State Baga Hural adopted 27 new laws, amended 19 laws, ratified 17 international treaties and conventions. Thereon, the functioning of the State Baga Hural was terminated upon transfer of its mandate to the State Great Hural of Mongolia, which was established in 1992 under the new Constitution of Mongolia.