Closing the Loop on Latent Reasoning via Test-Time Reconstruction
Authors: Xiaopeng Yuan, Haibo Jin, Ye Yu, Peng Kuang, Lijun Yu, Yushun Dong, Haohan Wang
Organizations: University of Illinois Urbana-Champaign · Google · Florida State University
Abstract
Recent work moves intermediate reasoning from natural-language traces into latent or cache-level representations to reduce token overhead and avoid a discrete communication bottleneck. However, this shift also removes a key advantage of textual reasoning: intermediate states are no longer inspectable, making it difficult to determine whether a latent state still preserves the constraints of the original query. As a result, latent reasoning typically operates in an open loop, where a latent state is produced and consumed without an input-anchored fidelity check. We propose ReLAT (Reconstruction-Guided Latent Reasoning At Test Time), a self-supervised test-time training method that closes this loop using the query itself as the reference. Our key observation is that if a latent state faithfully represents a query, the query should be recoverable from it; if the query cannot be recovered, the latent state has lost task-relevant information. ReLAT operationalizes this principle by constructing a differentiable Question -> Latent Thought -> Question cycle and optimizing query reconstruction loss through the latent thought before answer generation. This anchors opaque latent computation to the problem specification it is supposed to represent. Across mathematical reasoning, knowledge QA, and code generation benchmarks on the Qwen family, ReLAT consistently improves over single-model inference, text-based collaboration, open-loop latent collaboration, and alternative test-time training objectives. On Qwen3-8B, ReLAT raises AIME 2024 accuracy from 56.7% to 73.3%, a 16.6-point gain over the strongest open-loop latent baseline.
Chain-of-thought (CoT) reasoning improves large language models (LLMs) on difficult tasks, but it also makes inference expensive because every intermediate step must be generated as a discrete token. Latent reasoning reduces visible token generation by propagating continuous states, yet replacing explicit derivations with latent computation can hurt tasks that require symbolic checking. We propose Latent-Then-Explicit Reasoning (LaTER), a two-stage paradigm that first performs bounded exploration in a continuous latent space and then switches to explicit CoT for verification and answer generation. In a training-free instantiation, LaTER projects final-layer hidden states back to the input embedding space, preserves the latent KV cache, and uses entropy and model-native stop-token probes to decide when to switch. We find that strong reasoning models already exhibit structured latent trajectories under this interface. On Qwen3-14B, training-free LaTER reduces total token usage by 16%-32% on several benchmarks while matching or improving accuracy on most of them; for example, it improves AIME 2025 from 70.0% to 73.3% while reducing tokens from 15,730 to 10,661. We further construct Latent-Switch-69K, a supervised corpus that pairs condensed solution intuitions with shortened explicit derivations. Fine-tuning with latent rollout and halting supervision yields additional gains: trained LaTER reaches 80.0% accuracy on AIME 2025, 10.0 points above the standard CoT baseline, while using 33% fewer tokens. Our code, data, and model are available at https://github.com/TioeAre/LaTER.
Latent reasoning performs multi-step inference in continuous hidden states, promising more compact and efficient reasoning. However, these opaque states raise a question of faithfulness: whether the latent reasoning steps drive the final answer. Prior work studies this question at selected checkpoints and reports several unfaithful behaviors. This endpoint view leaves how evidence of faithfulness evolves during training unexamined. We track behavioral and activation-based evidence across training using verified counterfactual edits and interventions on the latent reasoning states. We find that high task accuracy can coexist with low counterfactual responsiveness: as accuracy improves, responsiveness can decline, and different latent reasoning approaches follow distinct trajectories. On ProsQA, output sensitivity to norm-noise replacement declines alongside counterfactual responsiveness, although the result depends on the replacement. Across separately trained binary-choice and open-ended GSM settings, intervention sensitivity follows opposite trajectories. These results show that evaluating only a final checkpoint can obscure both when counterfactual responsiveness changes and what the latent states contribute.
Chain-of-thought reasoning unfolds in discrete token space: each step is committed as text, errors propagate, and eliciting good traces presupposes traces to imitate. Reasoning instead in a model's continuous representation space - where intermediate states are vectors rather than words - sidesteps these constraints, but leaves open how those latent states should be computed. We approach this along two axes. First, we keep a large language model (LLM) frozen and use it for what it is already good at - modeling and decoding sequences - while a small auxiliary network supplies continuous latent thoughts as input. Second, we produce those latents by recurrence: a tiny recurrent reasoner refines them over many steps, decoupling the depth of computation from the size of the model, so that the latents are a product of iterative processing rather than a single forward pass. We instantiate this as Latent Recurrent Thoughts (LRT): a task-dedicated proposer supplies base latents, a recurrent reasoner refines them through bounded residual corrections, and the frozen LLM decodes the answer. On symbolic reasoning with answer supervision but no reasoning traces (Countdown-4, Sudoku) and on natural-language reasoning (HumanEval, MBPP, StrategyQA), LRT substantially outperforms prior frozen-decoder continuous-space reasoning methods under an identical decoder, prompt, data, and training budget, and outperforms non-thinking-mode chain-of-thought prompting on the same backbone at a small fraction of its inference compute.