The exiled Tibetan spiritual leader addressed followers at the Gandantegchenlin monastery and spoke about materialism to kick-start a four-day visit that Mongolia has said will be purely religious in nature and won't include meetings with officials.
Still, the trip could have repercussions for land-locked Mongolia's relationship with China, which briefly closed its border with Mongolia in 2002 to protest a visit by the Dalai Lama.
Yesterday, China's Foreign Ministry strongly urged Mongolia to deny the Dalai Lama a visit for the sake of a "sound and steady" development of bilateral ties.
The Dalai Lama's visit comes at a time when Mongolian leaders are seeking a USD 4.2 billion loan from Beijing to pull the country out of a deep recession.
Mongolian Buddhism is closely tied to Tibet's strain and many in the heavily Buddhist country revere the Dalai Lama, who made his first visit in 1979.
The Dalai Lama is scheduled to chant special sutras tomorrow at a large sports facility built by Chinese companies through Chinese aid.
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