It rises in the Khangai Mountains in the Tsenkher sum of Arkhangai province at the foot of the Suvraga Khairkhan mountain. From there, it crosses the border into Uvurkhangai province. and follows the upper Orkhon valley in eastern direction until it reaches Kharkhorin. On this stretch, very close to the Orkhon the Ulaan Tsutgalan river features a waterfall, ten meters wide and twenty meters high. The waterfall is a popular destination for tourists.