About 300 people gathered to watch the statue be lifted from its plinth in a park and placed on a flat-bed truck at a ceremony, the BBC reported.
Mayor Bat-Uul Erdene gave a 10-minute speech at the ceremony, during which he denounced Lenin and his fellow communists as "murderers."
Bat-Uul said the statue would be auctioned off with a starting price of about $280.
During the Cold War, Mongolia was effectively a Soviet satellite state, but in 1990 the country let go of its one-party system, and embraced political and economic reforms.
Notable deaths of 2014 [PHOTOS]