It is located in Tariat village of Arkhangai province near Khorgo volcano. A freshwater lake, tributary of the Terkhiin River that originates in the Khangai Mountains, formed by the hot melt of the Khorgo volcano. It is 16 kilometers long and 6 kilometers in the widest part and covers an area of 61 square kilometers. It is also 20 meters deep and is elevated 2060 meters above sea level.

There are more than 10 rivers flowing into this lake, the largest of which is the Terkhiin river. The only source that flows out is the 50 kilometers long Suman River which flows into the Chuluut River. On a small island in the middle of the lake, birds build their nests and lay their eggs. Black geese congregate in the lake and dive to a depth of 5 m and hunt for fish.

As per the legend of Terkhiin Tsagaan Lake, there is a hill with an Ovoo located on the east side of the Terkhiin Tsagaan Lake. It is said that Suddenly, the people on the expedition saw a great lake and shouted, "Look at that great white lake." And that is why It was named Terkhiin Tsagaan lake.