Long horizon language model agents continually accumulate reasoning history, increasing context length and inference cost even after earlier decisions have been executed and observed. Unlike static Chain of Thought compression, removing historical reasoning can change future actions and the resulting interaction trajectory. We study when such reasoning can be safely forgotten. We propose Interaction Aware Compression for Long Horizon Reasoning (ICLR), a training free online method that ranks reasoning blocks using frozen proxy entropy while preserving actions, tool calls, and observations. On 260 WorkBuddyBench tasks, ICLR improves average reward from 0.699 to 0.718, while reducing input, output, and cache read tokens by 25.5%, 14.4%, and 33.3%, respectively. Ablations reveal trajectory amplification, where local reasoning deletion produces nonlinear changes in total computation by altering subsequent interaction. Representation probing, activation patching, and controlled trajectory analyses further suggest that historical reasoning becomes more replaceable once task relevant derived state has been reliably externalized into code, files, tool outputs, or environmental feedback. These results characterize agent reasoning as dynamic working state rather than permanent interaction history.
Long-horizon agents depend on context management: systems compress, summarize, and evict old tokens so tasks can continue beyond finite windows. That is safe only when dropped information is no longer needed or has been internalized. Plans are the stress case: they are written early, used for many steps, and first to be evicted. We introduce replay pairing, a diagnostic that runs the same trajectory with and without the plan in history and measures hidden-state cosine distance. On Llama-3.1-70B, plan signal spikes to 0.453 one step after the plan, then falls 4.1x in a single action-observation step; HotpotQA falls 12.4x. This is evidence that standard LLM agents do not carry plans forward as persistent state, and instead depend on the plan remaining in context. A layer-L32 probe detects this decay as a diagnostic, not as proof that it reads plan content itself. Reasoning models add a measurement confound: their <think> traces re-derive plan content, so standard stripping leaves plan evidence in the stripped condition. We name this the reasoning-trace confound and fix it with strict stripping, which removes prior <think> blocks from the stripped run only. It recovers +163% of the step+1 signal in-sample and +153% held out, while not meaningfully changing non-reasoning Llama (+4.8%). On DeepSeek-R1-Distill-Llama-70B, a Llama-trained probe transfers at AUROC 0.748 (p=6e-4), while R1-specific probes reach 1.000, suggesting R1 encodes plan signal in a different hidden-state direction. Finally, a compression stress test shows the practical cost: naive plan eviction cuts ALFWorld success by 34.7pp, while probe-gated re-surfacing does not recover it. The contribution is a measurement and stress-test framework showing that agent-critical information can be context-resident rather than persistent. Context management is load bearing, but plan protection alone is not enough.
Long-horizon agentic reasoning requires large language models to act over long interaction histories containing thoughts, tool calls, observations, and partial conclusions. The challenge is not merely that these histories grow long, but that information needed for the current decision may be scattered across distant steps and only become relevant later. Existing approaches address this difficulty by truncating the interaction history, compressing it into shorter surrogates, or retrieving selected parts of it for reuse, but they do not explicitly model how access to past interaction should adapt to the agent's evolving state. We instead cast long-horizon reasoning as a problem of state-adaptive memory. To this end, we propose State-Adaptive Memory~(SAM), a standalone framework that consolidates ongoing interaction into compact memory cues while preserving raw trajectory pages for intent-driven recall. These cues are not treated as replacements for history; rather, they serve as lightweight handles that allow the agent to reconstruct temporally distant information according to its current needs, without retraining the underlying backbone. We further optimize the memory module through expert-guided supervision and reinforcement learning, aligning it with trajectory-level utility. Across BrowseComp, BrowseComp-ZH, WideSearch, and HLE, SAM consistently outperforms strong baselines over diverse agent backbones. Our results suggest that explicit memory modeling provides a simple and effective foundation for long-horizon agentic reasoning.
Recurrent context compression controls context growth in long-horizon agents, but its behavioral effects remain poorly understood. In this preliminary empirical study, we show that compression can weaken the influence of recent interactions, increasing blocked actions, repeated exploration, and instability across runs. Motivated by these observations, we introduce TRACE, a verifier-guided framework that evaluates individual compaction events through paired closed-loop continuations from the same environment state and uses summary preferences to optimize a natural-language compression prompt while keeping all models frozen. Initial results on AppWorld show improvements over existing compression baselines in task performance, multi-run reliability, and context--execution efficiency. These findings provide early evidence for boundary-local evaluation as a promising direction for reliable agent context compression.