The 1932 uprising in Mongolia remains a contested event in historical discourse, often debated as either a rebellion against the government or a people's resistance movement. The unrest was sparked by rumors of the Panchen Lama’s arrival and quickly escalated, beginning with an attack on administrative officials in Khubsugul aimag. The rebellion, led by local figures including lamas and former officials, spread across multiple regions, establishing temporary administrations and engaging in violent confrontations with government forces. The insurgents, referred to as “yellow soldiers,” targeted state institutions such as cooperatives and schools while mobilizing local populations. Despite lacking direct foreign intervention, the rebellion reflected growing discontent with leftist policies. The Mongolian People's Revolutionary Party (MPRP) responded by dispatching a special government commission, backed by military force, to suppress the uprising. Although temporarily subdued by mid-1932, continued resistance and the scale of the conflict forced the Mongolian leadership and the Comintern to reassess their policies. The uprising was reinterpreted after 1990 as a “people’s rebellion,” with some viewing it as a national liberation movement opposing leftist excesses. This paper seeks to analyze the multifaceted nature of the 1932 events, exploring both its spontaneous origins and its broader implications for Mongolian political history.