Journal of Settlements and Spatial PlanningJ o u r n a l h o m e p a g e: https://jssp.reviste.ubbcluj.ro Small towns are widely recognized as key drivers in rural sustainable development, primarily by offering essential public services to residents in remote areas, thereby playing a pivotal role in promoting rural sustainability. Research endeavors focusing on small towns and rural regions of Mongolia are infrequent, with the majority of existing studies and reports predominantly rendered in the national language. This linguistic barrier significantly impedes the facilitation of international-level research in these areas. The current study is designed to address this gap by conducting a detailed analysis aimed at identifying small towns within local administrative units. This identification is predicated on an evaluation of their essential functions and activities, utilizing national statistical data from 21 provinces across Mongolia. The approach is geared towards understanding the unique characteristics and roles of these towns within the broader context of rural development and governance. The results show that soum centers are the main destination for access to daily necessities, agricultural trades, non-farm employment, basic education, and minor medical treatment for remote rural residents and serve as small towns. The varied functions of small towns are influenced by socioeconomic factors, urban proximity, and infrastructure. The research findings will enhance our knowledge of the functions of small towns within the rural hierarchy in Mongolia.