cs.AISep 29, 2026

FOCUS: Training-Free Decision-Preserving Context Compression for LLM Agents

Authors: Shantanu Dixit, Anson Bastos, Xuchao Zhang, Chetan Bansal, Saravan Rajmohan

Organizations: M365 Research, Microsoft

Abstract

LLM agents accumulate interaction histories that grow linearly with task length, causing quadratic inference cost scaling and performance degradation from attention dilution. Existing context-compression methods learn what to discard offline: by contrastively optimizing guidelines, distilling compressors, or training compression policies. This incurs a substantial cost. Further, the compression policy is learned a priori and is not dynamically conditioned on the evolving test-time trajectories. In this paper we ask a complementary question: Which past interactions causally shape the agent's future decisions? We recast context compression as a causal decision preservation problem over discrete interaction units and introduce FOCUS, a training-free context compression framework that operates entirely at test time. Our method requires no offline data collection or fine-tuning, and is architecture-agnostic, attaching to any closed-API frontier model as a modular compression layer. We evaluate FOCUS on diverse agentic benchmarks including API and tool-calling, QA, web domain and multi-turn dialogue. Our method establishes new state of the art performance, cutting peak context by up to 48% and dependency by 73% while improving task success by up to 8.9 percentage points over uncompressed execution.

Figures & tables

Appendix figures & tables1 asset

Supplementary material from the paper’s appendix.

Appendix

Explore similar work

CardsList
  1. AGORA: Adapter-Grounded Observation-Action Retention for Inference-Free Prompt Compression in LLM Agents

    May 26, 2026Haoran Zhang, Zhaohua SunLarge Language Model AgentsTask-Aware Compression

  2. When Can Agents Forget Their Reasoning? ICLR for Long-Horizon Agent Context Compression

    Sep 24, 2026Mingxuan Wang, Fei Luo, Bo Wang +6Long-Horizon AgentsAgentic Reasoning

  3. Learning Agent-Compatible Context Management for Long-Horizon Tasks

    May 29, 2026Lu Yi, Runlin Lei, Liuyi Yao +6Large Language Model AgentsLong-Horizon Task Planning