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The 16ft tall (5m) statue captures the legendary leader wearing Mongolian armour Genghis Khan on his steed.
The sculpture by artist Dashi Namdakov will stand next to Cumberland Gate until early September.
The artist, who had an interest in the nomadic tribes of Mongolia, wanted to honour the warrior on the 850th anniversary of his birth.
He said: "If I wanted to show him as a warrior I would have shown him as a warrior, but he is a thinker in this case. He is a divine figure in my country."
Namdakov was born in a Siberian village and brought up in the Buryat Buddhist culture.
His village was close to the area which was historically controlled by nomadic Mongol tribes and which led to his interest in Buryat and Mongol cultures.
Westminster Council selected the statue as part of its ongoing City of Sculpture festival, which was launched in 2010.
The festival aims to install works of art across the borough in the run-up to the Diamond Jubilee and the Olympic and Paralympic Games in the capital.
Halcyon Gallery said the sculpture was specially commissioned for Marble Arch.
The artwork captures the intricate details of the medieval Mongolian armour and dress, including the golden plaques on the livery and the plaited hair.
The decision to depict the warrior on his horse embodies "the very essence of nomadism and brings the culture of the ancient Mongols directly to the public", the gallery said.
The sculpture's unveiling comes ahead of an exhibition by the artist in the gallery in Mayfair next month.
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An artwork by street artist Banksy in Bristol has been painted over in an incident described by residents as an "act of vandalism".
The painting, opposite Bristol Children's Hospital, is of a crouched armed police officer, with a child about to burst a paper bag behind him ... more
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Two subterranean oil tanks behind Tate Modern will be transformed into galleries, creating the "most exciting new space for art in the world", according to the gallery's chairman ... more
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Unlike New Delhi and Mumbai, the city of Kolkata (formerly known as Calcutta) has no modern art museum, despite its traditional status as a center of art and culture ... more
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The top lot was Francis Bacon's Crouching Nude, which made £8.3m, while there were artist records for Germans Sigmar Polke and Georg Baselitz.
An Andy Warhol electric pink acrylic and silkscreen ink on canvas of Blondie singer Deborah Harry went for £3 ... more
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A rarely seen painting by Pablo Picasso has been sold for almost £13.5m at Christie's auction house in London, exceeding expectations.
Jeune Fille Endormie (1935), a portrait of the Spanish artist's lover, had been estimated to sell for £9m-12m ... more
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Tate Britain and the National Theatre are among recipients as are regional venues like Bath's Holburne Museum.
The "creative learning spaces" would help children benefit from the "transforming power of our world class cultural organisations", she said ... more
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Scientists have identified why the bright yellows in some of Vincent van Gogh's paintings have turned brown.
A complex chemical reaction is behind the deterioration of the works ... more
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There's trouble at the Ullens Center for Contemporary Art in Beijing. First, it was announced that Guy Ullens is divesting himself of the institution that he founded, and in fact getting out of Chinese art entirely, after having faced various roadblocks to realizing his vision in the Chinese capital ... more
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A painting by Francis Bacon of his friend and fellow artist Lucian Freud has sold at auction for £23m ($37m) - three times the pre-sale estimate ... more
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