Do LLMs Build World Models From Text? A Multilingual Diagnostic of Spatial Reasoning

When faced with complex spatial problems, humans naturally sketch layouts to organize their thinking, and the act of drawing further sharpens their understanding. In this work, we ask whether a similar principle holds for Large Language Models (LLMs): can learning to construct explicit visual layouts from spatial descriptions instill genuine spatial understanding? We introduce Text2Space, a dataset that pairs natural language descriptions with ground-truth ASCII grid layouts and spatial QA pairs, enabling us to separate failures in constructing spatial representations from failures in reasoning over them. We adopt ASCII because it is human-readable, operates entirely within the token space of language models, and encodes spatial relations in a structurally verifiable form. Our evaluation reveals a pronounced "Read-Write Asymmetry": LLMs interpret ASCII representations effectively but struggle to produce them from text, and these construction errors propagate to incorrect answers downstream. To address this limitation, we train models on layout construction (Text$\rightarrow$ASCII) and find that it significantly improves spatial reasoning from text alone, even without producing any ASCII at inference time. Combining construction with comprehension training further amplifies these gains. Crucially, these improvements transfer to three external spatial reasoning benchmarks, demonstrating that, much as sketching sharpens human spatial thinking, learning to construct explicit layouts instills spatial understanding that generalizes beyond the training format.

Human reasoning is inherently multimodal: when problems become difficult, we rarely think in words alone. We often externalize our reasoning by sketching diagrams or drawing grids to understand the underlying conceptual structure and avoid mistakes. Building on this premise, our research investigates: (a) whether grounding multi-hop textual-spatial stories into geometry-aware modalities, such as layouts or grids, improves reasoning compared to natural language-based inference; and (b) whether a model can decide when to rely on natural language reasoning and when to switch to a structured modality. We address these questions by introducing a switching metric based on trustworthiness and complexity signals, which estimates when grounding a spatial story into structure is likely to improve performance. This takes a first step toward principled modality selection in Large Language Model (LLM) reasoning. Across our settings, switching from natural language-based reasoning to a grid-based representation improves LLM performance by up to 42%, highlighting the importance of modality choice in shaping reasoning outcomes.

Multimodal large language models (MLLMs) excel at visual interpretation but fail on spatial reasoning tasks that humans solve reliably. Existing benchmarks evaluate these models as black boxes, limiting their ability to identify the underlying causes of lower performance: when a model fails a spatial reasoning task, it remains difficult to ascertain whether the hurdle is perceptual, such as recognizing object boundaries, or cognitive, such as reasoning about occlusion to infer hidden geometry. We introduce Spatial-IQ, a hierarchical diagnostic framework that decomposes object counting in stacked 3D structures into 9 perceptual and cognitive sub-tasks organized by the developmental stages of human spatial cognition, with mental rotation as an additional target probe. Using NVIDIA Isaac Sim, we procedurally generated a diverse dataset of roughly 80,000 stacked 3D structures with per-task ground truth. We evaluate models across three output formats (free-response text, multiple-choice images, and image editing) alongside a human baseline. The Spatial-IQ framework shows that top-performing models often succeed at the target task (object counting) without succeeding on the lower-level sub-tasks intended to support it, and that models differ in how much of these hierarchical chains they preserve, often revealing shortcut behavior that raw target-task accuracy alone would obscure. Finally, we demonstrate that training models with chain-of-thought (CoT) supervision over our hierarchical sub-tasks, combined with reinforcement learning with verifiable rewards, significantly improves both spatial consistency across sub-tasks and target-task accuracy, supporting the value of the proposed decomposition as both a diagnostic tool and a training signal.