The site of the city is home to older ruins, being the location of numerous Xiongnu royal tombs. From between the bones of ancient, half-forgotten monarchs, Khüree was initially founded in 1639 as a mobile monastery, moving between locations as it slowly amassed followers and devoted monks. It slowly gained an increasingly administrative function, claiming a growing degree of authority in hosting the Khan's court and judiciary. Meanwhile, it also slowly progressed into a major point for the trade of furs, cloth and tea, attracting significant Russian attention through the eighteenth century.

As the Qing Empire hurtled towards total collapse, Khüree became the capital of an officially independent Mongolia, a state only briefly given full, tumultuous independence. Nonetheless, Khüree remained the capital of Mongolia, benefitting from the Siberian Plan advanced under Nikolai Bukharin as it begun to industrialise. The city suffered during the Siberian Intervention, shorn between a collapsing Soviet Union and, ultimately, Japanese advances. Although it lost the official title of capital, Khüree is still a preeminent city, and has remained an important judicial and commercial centre.

Today, Khüree has managed to hold onto its preeminent position in Mongolia. Remaining a major religious centre, its swelling population expands even further during the numerous religious festivals hosted in the city. Echoes of Bukharin, the corpse of another regime, still echoes across the city, serving as the foundations for occasional dissents that persist in spite of the best efforts of the IJA. As time goes on, and as the foundations of his legacy are slowly expanded on, Khüree will play a pivotal role in the integration of Mongolia into the wider Sphere.