Unlocking the Working Memory of Large Language Models for Latent Reasoning

Large Language Models (LLMs) increasingly rely on intermediate reasoning, yet explicit Chain-of-Thought (CoT) suffers from a linguistic space bottleneck: each thought must be decoded into tokens, causing high inference overhead. Latent reasoning moves deliberation into continuous space, but existing methods mostly learn deterministic or reward-maximizing paths, lacking a principled way to allocate probability across trajectories with different correctness and costs. We propose Latent Thought Flow (LTF), which models reasoning as variable-length continuous trajectories and trains a sampler to match a reward-induced posterior over answer quality and computation cost. We instantiate this with a continuous GFlowNet using stochastic latent transitions. To handle sparse answer supervision, we introduce an Entropy-Weighted Subtrajectory Balance objective for intermediate rewards and a reference-prior regularizer to anchor exploration. Experiments under finetuning and transfer learning settings show that LTF outperforms explicit CoT and latent reasoning baselines, improving accuracy by 9.5% while reducing reasoning length by 27.2% on average compared with strong latent reasoning baselines.

Chain-of-thought (CoT) prompting improves reasoning in large language models (LLMs) by externalizing intermediate computation as discrete text tokens, but this textual interface also introduces redundancy and inference overhead. Latent reasoning offers a promising alternative by carrying part of the computation in continuous representations. However, existing methods typically predefine when latent computation is invoked and how it is allocated during decoding, leaving a key problem unresolved: when to invoke latent computation, what type of computation to perform, and how much budget to allocate. We propose \textbf{Ty}ped \textbf{L}at\textbf{e}nt \textbf{R}easoning (Tyler), a typed and budget-aware framework for latent reasoning during autoregressive decoding. Tyler learns a policy that, at each decoding step, chooses between emitting a text token and switching to a latent computation module specialized for a particular reasoning function. Once invoked, an operator maps the current reasoning state into latent tokens that support global planning, local state updates, or reusable procedural abstraction. Across extensive experiments on three backbone LLMs, Tyler improves accuracy by up to 14.49 points over CoT and by up to 4.30 points over the strongest competing baseline. It further generalizes across diverse reasoning domains and achieves the best final-stage performance with the lowest forgetting.

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.