English

Loop, Think, & Generalize: Implicit Reasoning in Recurrent-Depth Transformers

Computation and Language 2026-04-10 v1 Artificial Intelligence Machine Learning

Abstract

We study implicit reasoning, i.e. the ability to combine knowledge or rules within a single forward pass. While transformer-based large language models store substantial factual knowledge and rules, they often fail to compose this knowledge for implicit multi-hop reasoning, suggesting a lack of compositional generalization over their parametric knowledge. To address this limitation, we study recurrent-depth transformers, which enables iterative computation over the same transformer layers. We investigate two compositional generalization challenges under the implicit reasoning scenario: systematic generalization, i.e. combining knowledge that is never used for compositions during training, and depth extrapolation, i.e. generalizing from limited reasoning depth (e.g. training on up to 5-hop) to deeper compositions (e.g. 10-hop). Through controlled studies with models trained from scratch, we show that while vanilla transformers struggle with both generalization challenges, recurrent-depth transformers can effectively make such generalization. For systematic generalization, we find that this ability emerges through a three-stage grokking process, transitioning from memorization to in-distribution generalization and finally to systematic generalization, supported by mechanistic analysis. For depth extrapolation, we show that generalization beyond training depth can be unlocked by scaling inference-time recurrence, with more iterations enabling deeper reasoning. We further study how training strategies affect extrapolation, providing guidance on training recurrent-depth transformers, and identify a key limitation, overthinking, where excessive recurrence degrades predictions and limits generalization to very deep compositions.

Keywords

Cite

@article{arxiv.2604.07822,
  title  = {Loop, Think, & Generalize: Implicit Reasoning in Recurrent-Depth Transformers},
  author = {Harsh Kohli and Srinivasan Parthasarathy and Huan Sun and Yuekun Yao},
  journal= {arXiv preprint arXiv:2604.07822},
  year   = {2026}
}

Comments

19 pages, 18 figures. Under review

R2 v1 2026-07-01T12:00:34.699Z