Externalization in LLM Agents: A Unified Review of Memory, Skills, Protocols and Harness Engineering

Large language model (LLM) agents operate in dynamic environments where knowledge continuously evolves. Existing memory systems typically treat external memory as a monotonically growing repository, inevitably leading to retrieval degradation and increasing computational costs over time. We argue that the core challenge is not retrieval alone, but managing the knowledge lifecycle: deciding what to externalize, update, or ultimately internalize. Inspired by Complementary Learning Systems (CLS) theory in neuroscience, we propose Dual-Layer Agentic Memory, a framework that shifts memory management to the write phase through cost-aware epistemic routing and periodic parametric consolidation. Incoming information is categorized as non-write, write-new, or write-update, and routed through a small-to-large model cascade that minimizes routing overhead while filtering redundant memories. A subsequent write-back phase selectively consolidates high-value external memories into model parameters via supervised fine-tuning. Experiments demonstrate the dual efficiency of our approach: a 1.7B/8B cascade prunes up to 68% of redundant external memory while escalating fewer than 50% of inputs, yet retains over 98% of the downstream QA Exact Match (EM) achieved by an exhaustive retention baseline. We further show that periodic consolidation successfully internalizes external knowledge, allowing the router to adaptively suppress redundant writes as the model's epistemic boundaries evolve. Overall, our framework presents a unified paradigm for agent memory: selective externalization followed by selective internalization. Code and dataset will be released upon acceptance.

The integration of external tools has transitioned LLM agents from passive responders to autonomous systems. However, current benchmarks prioritize execution success, neglecting self-awareness capability, the ability to discern whether a problem requires necessary external resources or can be solved via internal parametric knowledge. To address this, we introduce KAPRO (Knowing-Acting Quadrant PRObe), a framework that evaluates cognitive-behavioral alignment by decoupling an agent's metacognitive judgment (Knowing) from its spontaneous execution (Acting). We further construct KAware, a dataset rigorously partitioning tasks into external, internal, and hybrid subspaces to systematically probe these epistemic boundaries. Extensive experiments across diverse agent architectures show that self-awareness capability is strongly correlated with task success but degrades sharply in internal-capability settings. Moreover, open-source and instruction-following models exhibit stronger tool overuse due to shallow pattern matching, while proprietary and reasoning-oriented models demonstrate more reliable cognitive gating. Benchmark and codes are available at https://github.com/AI-Santiago/KAware.

Large language model (LLM) agents increasingly operate in settings where a single context window is far too small to capture what has happened, what was learned, and what should not be repeated. Memory -- the ability to persist, organize, and selectively recall information across interactions -- is what turns a stateless text generator into a genuinely adaptive agent. This survey offers a structured account of how memory is designed, implemented, and evaluated in modern LLM-based agents, covering work from 2022 through early 2026. We formalize agent memory as a write--manage--read loop tightly coupled with perception and action, then introduce a three-dimensional taxonomy spanning temporal scope, representational substrate, and control policy. Five mechanism families are examined in depth: context-resident compression, retrieval-augmented stores, reflective self-improvement, hierarchical virtual context, and policy-learned management. On the evaluation side, we trace the shift from static recall benchmarks to multi-session agentic tests that interleave memory with decision-making, analyzing four recent benchmarks that expose stubborn gaps in current systems. We also survey applications where memory is the differentiating factor -- personal assistants, coding agents, open-world games, scientific reasoning, and multi-agent teamwork -- and address the engineering realities of write-path filtering, contradiction handling, latency budgets, and privacy governance. The paper closes with open challenges: continual consolidation, causally grounded retrieval, trustworthy reflection, learned forgetting, and multimodal embodied memory.