Daurian Pika (Ochotona dauurica) are steppe-dwelling burrowing mammals with the potential to have large effects on central Asian grasslands due to their extensive range, propensity to occur at extremely high density, and roles as ecosystem engineers and important prey species. The few studies that have been done are mostly from northern China and Russia, while little research has been done in the majority of their range in Mongolia. We studied a population of Daurian Pika in the Darhad Valley of northern Mongolia, near the southern edge of the permafrost, where climate change is progressing rapidly. We evaluated pika populations at 87 random plots across a large 40 × 125 km area and assessed the impact of factors related to vegetation cover, grazing, and soils that predicted their occupancy and an index of their density (number of active burrows). We found that pikas were more likely to occur in areas with taller grass and higher forb cover, and burrow densities were higher in areas with low or moderate grazing and lower soil moisture. In summer, pikas mainly foraged on grass compared with forbs—while in fall, forbs appeared to be selected for in haypiles. Dense pika burrow systems had taller grasses and forbs in their immediate vicinity, suggesting that in some cases, pika could help promote plant growth for other grazers. Long-tailed Ground Squirrel (Urocitellus undulatus) was the second most abundant small mammal in our study sight and selected for areas with high cover of overgrazing indicator species and for short forbs, providing little evidence for competition with Daurian Pika. Our results suggest that shorter grass (~1 cm) can decrease pika occupancy by 75%, while heavy grazing may decrease burrow density by 66% in dry soils. With grazing pressure in Mongolia increasing dramatically since the 1990s, future research is strongly needed to assess the impacts of grazing on this keystone species.