Mongolia borders on northern China, has abundant grassland resources and grassland-based livestock husbandry is the pillar industry there. Based on the literature and statistical data, this study surveys the development status of grassland agriculture in Mongolia from three aspects: reform of the pastoral institutional system, the grassland resources, and the development of a grazing-based livestock industry. Our study also analyzes the differences between Mongolia and the Inner Mongolia Autonomous Region of China. Grassland agriculture in Mongolia has undergone three stages of institutional reforms, the post-transformation period began at 1990 and is ongoing till now. The grassland itself is collectively owned and the livestock is privately owned. Under the influences of climate change, over exploitation of grassland, expansion of cultivated land and urban areas, and mining pollution, the grassland area has decreased and the ecological status of the grassland is gradually deteriorating. The proportions for each of Mongolia’s five categories of livestock remain stable but with regional variability and differences. The growth in total livestock numbers is much higher in Mongolia than in Inner Mongolia, China. In recent years, the grazing-based livestock husbandry has faced a problem of an aging population. As a result, the proportion of animal husbandry output value within the national economy has gradually declined and the industrial chain urgently needs to be improved. Finally, this study proposes implications for Mongolia and offers information relevant to the development of grassland agriculture in China.