Benj Binks' movie Mongolian Bling is doing the international festival circuit now, opening in Jakarta on Friday.
He's told Radio Australia's Connect Asia program making the film was an eye opener as far as the changing Mongolian society.
"I first went to Mongolia when I was a tour guide...and I rocked up to Mongolia expecting nomads and herders and a traditional lifestyle," he said.
"That's there, but there's also this incredible modern, contemporary, urban lifestyle that most of the Mongolians exist in."
The film took five years to make, and delves into the thriving music scene in Mongolia's capital, Ulaanbaatar.
It focuses in particular on three of the local hip hop stars, Gennie, Gee and Quiza.
"When we were doing the film, back in 2010, Gee was a bit more underground," he said.
"Now he's huge, Quiza's huge and Gennie's sort of up and coming, but they're all pretty big stars.
"Record sales aren't huge - Mongolia's a developing country and there's not a huge amount of wealth there - they're all popular and stars, but it's tricky for them to exist on that in terms of making a living as a rap artist or a hip-hop artist."
The film follows the small group of young rappers who have made the American import their own - telling Mongolian stories, about their Mongolian hood.
Mr Binks says some Mongolians actually claim hip-hop was invented there.
"There's definitely a strong link to traditional Mongolian culture - there's one character in the film...who claims that hip-hop is actually from Mongolia," he said.
"Hip-hop when it first came to Mongolia was very much mimicking the West...but as the genre has developed, it's become more Mongolian - incorporating traditional Mongolian instruments...and there's also throat-singing.
"So there's artists who are not just using samples but are actually writing music using these instruments specifically for their tracks."