Name of Shop: The State Department Store
The State Dept Store in UB has a great selection of souvenirs, including some wonderful Mongolian jackets, but the prices are a bit high. Save it for last, and instead do all the shopping you can at smaller, cheaper outlets. There's a good one around the corner from that Bayansomethingorother hotel near the square, and the small shop in the Juulchin Camp airport actually had some really nice postcards and masks. Or, of course, you can be a real tourist like us and manage to shop right in the middle of the Gobi!
What To Buy: Traditional jacket.
Sheep ankle bones (for fortune telling - make sure you get an English instruction kit!)
Wooden masks.
Vodka! Comes in a fantastic leather pouch.
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Theme: Local Craft