You will find lots of craft made of felt: small yurts, slippers ... which make nice small presents for your family and friends.
Objects used by the nomads during their everyday life are also very nice: wooden spoons, traditional saddles ...
Colored nomadic clothes, incredible hats (very important in the traditional clothing) are also easy to find.
Mongolia is the first cashmere producer in the world.
You will find very good quality cashmere products at the State Department Store, with a large choice.
You will also find Buddhist statues and traditional religious objects.
Be careful with antiques, as their export is forbidden, and you could have them seized at the airport on the way back, even for small objects, or fake antiquities bought in the department store of Oulan Bator.
The State Department Store, situated on Peace avenue in Ulaanbaatar, gathers about all that you can hope to find.
On the last floor, you will find the largest choice of souvenirs.
Beware of pickpockets everywhere in the city center.