Aim: Fossil pollen spectra from lake sediments in central and western Mongolia have been used to interpret past climatic variations, but hitherto no suitable modern pollen-climate calibration set has been available to infer past climate changes quantitatively. We established such a modern pollen dataset and used it to develop a transfer function model that we applied to a fossil pollen record in order to investigate: (1) whether there was a significant moisture response to the Younger Dryas event in north-western Mongolia; and (2) whether the early Holocene was characterized by dry or wet climatic conditions. Location: Central and western Mongolia. Methods: We analysed pollen data from surface sediments from 90 lakes. A transfer function for mean annual precipitation (Pann) was developed with weighted averaging partial least squares regression (WA-PLS) and applied to a fossil pollen record from Lake Bayan Nuur (49.98° N, 93.95° E, 932 m a.s.l.). Statistical approaches were used to investigate the modern pollen-climate relationships and assess model performance and reconstruction output. Results: Redundancy analysis shows that the modern pollen spectra are characteristic of their respective vegetation types and local climate. Spatial autocorrelation and significance tests of environmental variables show that the WA-PLS model for Pann is the most valid function for our dataset, and possesses the lowest root mean squared error of prediction. Main conclusions: Precipitation is the most important predictor of pollen and vegetation distributions in our study area. Our quantitative climate reconstruction indicates a dry Younger Dryas, a relatively dry early Holocene, a wet mid-Holocene and a dry late Holocene.