This study analysed the potential benefits and challenges of advancing the tourism and horticultural sectors in Uvs and Khovd Aimag, Western Mongolia, based on the analysis of rural livelihoods. The region is characterised by low population density, (semi-)mobile pastoralism, harsh climatic conditions, and increasing vulnerability due to climate change and structural transformations. The study’s problem statement highlights the threat posed by interlinked structural and climatic changes to the resilience of rural livelihoods. Horticulture and tourism were assessed as alternative income sources. The research identified six target groups for development interventions, including households already engaged in these sectors, job seekers, low-income women, youth, vulnerable pastoralists, artisanal miners, and horticulturists. Each group faces distinct challenges such as market access, seasonality, lack of infrastructure, and climatic risks. Horticulture, dominated by small-scale farmers, faces short growing seasons, high input costs, water scarcity, and soil degradation. Despite these, it offers inclusive employment potential. Improved technologies, inputs, and cooperative structures are essential for sustainability. Tourism, defined nationally as an economic pillar, remains underdeveloped in both Aimags. With a focus on nature and cultural tourism, it suffers from low value creation, poor infrastructure, limited workforce skills, and seasonality. Community-based tourism offers promise but requires targeted support and training. Increased local value creation, improved marketing, and cooperation across provinces are recommended. In conclusion, the study outlines sector-specific and cross-cutting interventions needed to promote sustainable, inclusive rural development through horticulture and tourism in Western Mongolia.