With 2.59 children per woman in 2008, Mongolia appears today as an exception in East Asia where fertility rates are far below the replacement level. Moreover, from its historical nadir of 1.95 children per women in 2005, fertility is on the rise. This paper first presents recent fertility development in Mongolia. Second, based on the experiences of European and East Asian countries, factors contributing to the development of low fertility are discussed in reference to the Mongolian context. Most of these factors are indeed found in Mongolia and could probably contribute to reducing fertility in the future. However, the country also presents cultural-family practices and recently-adopted fertility-family incentives which may support and stabilize fertility rates. These recent fertility-incentives factors and policies adopted by the Government of Mongolia are discussed in the final part from the perspective of equity, efficiency, and efficacy proposed by McDonald (2006b, “An assessment of policies that support having children from the perspectives of equity, efficiency and efficacy”, Vienna Yearbook of Population Research 2006, Special issue on ‘Postponement of childbearing on Europe’, 213–234). The aim is to determine if these measures are efficient to counterbalance and cancel out the depressing fertility effects.