Businessman and judoka Khaltmaa Battulga of the opposition Democratic Party (DP), who led the first round, faces parliament speaker Mieygombo Enkhbold of the ruling Mongolian People's Party (MPP).
Enkhbold eked out a mere 0.1 percent victory over the Mongolian Revolutionary People's Party's Sainkhuu Ganbaatar in last week's first round, which was mired in controversy.
Ganbaatar cried foul and demanded a recount, but the result was eventually confirmed.
Many voters in the resource-rich but debt-laden country wedged between Russia and China are so fed up with their scandal-plagued politicians that they launched a movement dubbed "#WhiteChoice" to encourage people to submit blank ballots.
Both Battulga and Enkhbold were linked to scandals ahead of the first-round vote.
A video showed Enkhbold and two MPP officials allegedly discussing a 60 billion tugrik (USD 25 million) plan for selling government positions.
Battulga was haunted by reports of offshore accounts attached to his name, as well as the arrests of several of his associates by Mongolia's anti-corruption body last spring.
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