Latent reasoning reduces the token-generation cost of chain-of-thought reasoning by replacing explicit intermediate tokens with continuous latent transitions. However, existing latent reasoning methods usually rely on dense and entangled transitions, making their reasoning trajectories difficult to inspect or intervene on. We introduce LSTR (Latent Sparse Transcoder Reasoning), a framework that turns sparse transcoders from post-hoc diagnostic tools into in-loop, intervenable transition components for latent reasoning. At each latent step, a Latent Transition Transcoder (LTT) combines a linear skip path with a Top-k sparse innovation path, exposing a small set of active sparse features. Under matched compression settings, LSTR offers a mechanistically inspectable alternative to dense latent reasoning. On GSM8K-Aug, ablating only a few top-active sparse features reduces accuracy by up to 16.5%, whereas analogous interventions have much smaller effects in dense latent baselines. These results indicate that the active sparse features are causally involved in the latent transition process, rather than merely post-hoc descriptors. Additional experiments on mathematical benchmarks and StrategyQA suggest that sparse latent transitions can preserve the compression benefits of latent reasoning while making the resulting trajectories more inspectable and intervenable.
Explicit chain-of-thought (CoT) reasoning substantially improves the reasoning ability of large language models (LLMs), but incurs high inference cost due to lengthy autoregressive traces. Existing latent reasoning methods offer a promising alternative, yet they often treat reasoning as uniformly compressible, causing precision-critical intermediate steps to be overly compressed and thereby degrading reasoning accuracy. In this work, we propose Selective Latent Thinking (SLT), a framework that selectively compresses redundant reasoning spans into latent representations while preserving precision-critical spans as explicit CoT within the same reasoning trajectory. Specifically, SLT first uses a lightweight decoder to anticipate a short upcoming reasoning span, and then applies confidence-based gating to determine the longest span that can be reliably compressed. The accepted span is encoded into a compact latent representation to improve reasoning efficiency, while uncertain or precision-critical reasoning remains in explicit CoT form to preserve accuracy. To learn this selective compression policy, SLT adopts a three-stage training strategy that combines span-level latent compression, reliability-aware future reasoning prediction, and trajectory-level reinforcement learning to optimize the trade-off between answer correctness and reasoning cost. Extensive experiments across four mathematical reasoning benchmarks demonstrate that SLT achieves 22.7% higher accuracy than latent reasoning baselines at comparable compression ratios, while reducing reasoning chain length by 58.4% with only 2.8% accuracy degradation compared to explicit CoT,Our code can be found in https://github.com/hunshi34/SLT.
Large language models achieve high reasoning performance via explicit chain-of-thought and reinforcement learning, but require long output sequences and extended inference time. Latent reasoning reduces this cost by shifting computation into a latent space; however, continuous latent methods are hard to train, suffering from unstable and uninterpretable reasoning trajectories. We argue these issues stem from a misalignment between continuous-space reasoning and discrete symbolic supervision, as continuous states lack explicit anchors for step-by-step alignment. To resolve this, we propose \textbf{Discrete Latent Reasoning~(DLR)}, the first method that converts continuous latent states into explicit discrete tokens. Inspired by render-based compression, we render textual chains of thought into images, extract visual features, and construct a discrete latent vocabulary via clustering-based fine-tuning. Expanding the vocabulary and output head enables standard autoregressive modeling over both natural language and latent tokens, supporting pretraining alignment, SFT, and RL. Experiments on five reasoning benchmarks and two model series~(Qwen3-VL and LLaMA-3) confirm that \textbf{DLR} outperforms prior latent reasoning baselines with up to \textbf{20× compression}. Furthermore, the learned latent trajectories retain an interpretable semantic structure. Overall, discrete latent tokens provide a controllable and interpretable basis for efficient latent reasoning.
Language models typically reason via explicit chain-of-thought (CoT), generating intermediate steps token-by-token. Latent CoT offers an alternative: it performs multi-step reasoning in the model's hidden states, replacing decoded tokens with continuous representations for greater efficiency. However, existing latent CoT methods underperform explicit CoT beyond 1B parameters, and the gap widens with scale. Looped, or recurrent-depth, Transformers, which reuse their weights to increase computation depth without adding parameters, are a natural fit for latent reasoning. We therefore ask whether looped Transformers can bridge this gap. We answer affirmatively with a simple recipe: a looped padded Transformer that processes K latent blocks in parallel for R iterations, with a cross-entropy loss on each latent position's gold CoT-step token, similar to explicit CoT supervision. We instantiate it as LOTUS (Looped Transformers with parallel supervision on latents). LOTUS is, to our knowledge, the first latent-CoT method to bridge the gap to explicit CoT at the 3B scale, while cutting thought-phase latency by 2.5x-6.9x from compact math expressions to natural language. Projecting LOTUS's post-loop latents through the base LM head recovers the gold reasoning steps and even surfaces alternative valid intermediate steps, evidence that its latent space is interpretable and CoT-aligned. Ablations confirm that both the looped backbone and the parallel supervision on gold CoT tokens are essential. Code is available at https://github.com/yingfan-bot/lotus.