Genghis Khan laid the foundation of the Mongol Empire as one the largest contiguous empires in history. Khan once observed that "with Heaven's aid I have conquered for you a huge empire. But my life was too short to achieve the conquest of the world. That task is left for you". Stretching from Eastern Europe, parts of Central Europe to the Sea of Japan, parts of Arctic, Mongolian empire expanded in the eastward and southward into the Indian subcontinent, mainland South East Asia and the Iranian plateau; and westward as far as the Levant, Carpathian Mountains and to the borders of Northern Europe. It was the second largest empire in history only second to the British Empire.12 th and 13 th century Mongolian power and domination were nearly unchallenged. 700 years later, modern Mongolia today is in search of political space, identity and Mongolian experience of autonomy. Squeezed between gigantic Russian territory and ever expanding Chinese domination, Mongolia is in critical search for a 'Third Neighbour' to save Mongolia from the overriding neighbourhood influence. Search for a credible 'Third Neighbour' is a contemporary Mongolian national policy quest.In the context of Mongolia's 'Third Neighbour Dilemma', this paper examines India as an emerging possible Third Neighbour for Mongolia.