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Why Knowing Both Hops Is Not Enough: Understanding Two-Hop Generalization in Language Models

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TL;DR - A mechanistic study of why LLMs that know both individual hops of a two-hop query still fail to chain them, tracing the failure to a layer-wise mismatch and proposing a recurrent-style training fix. It matters because it explains a concrete compositional-reasoning gap and offers a training remedy.

  • Transformers trained from scratch in a controlled symbolic setting generalize on two-hop queries when the second hop matches the training distribution, but consistently fail when it is out-of-distribution.
  • Successful generalization coincides with the emergence of consistent intermediate representations for the same entities across contexts.
  • Failures stem from a cross-layer mismatch: lower layers build correct intermediate representations, while upper layers—though trained on the corresponding atomic facts—mainly learn to map them to outputs rather than reason over them.
  • A proposed recurrent-style training strategy lets transformers reuse reasoning circuitry across input forms, substantially improving OOD two-hop generalization.

Sources (1)

Why Knowing Both Hops Is Not Enough: Understanding Two-Hop Generalization in Language Models

arXiv cs.CL Zili Zhang, Yilin Wang, Heng Wang, Herun Wan, Minnan Luo 2026-08-07 arXiv:2608.07261
Public signals Semantic Scholar citations 0 · Semantic Scholar influential citations 0
Providers: Hugging Face · N/A OpenAlex · N/A Publisher · N/A Semantic Scholar · Citations 0 · Influential citations 0 X · N/A Fetched 2026-08-19 14:19:23.238323 UTC

TL;DR - A mechanistic study of why LLMs that know both individual hops of a two-hop query still fail to chain them, tracing the failure to a layer-wise mismatch and proposing a recurrent-style training fix. It matters because it explains a concrete compositional-reasoning gap and offers a training remedy.

  • Transformers trained from scratch in a controlled symbolic setting generalize on two-hop queries when the second hop matches the training distribution, but consistently fail when it is out-of-distribution.
  • Successful generalization coincides with the emergence of consistent intermediate representations for the same entities across contexts.
  • Failures stem from a cross-layer mismatch: lower layers build correct intermediate representations, while upper layers—though trained on the corresponding atomic facts—mainly learn to map them to outputs rather than reason over them.
  • A proposed recurrent-style training strategy lets transformers reuse reasoning circuitry across input forms, substantially improving OOD two-hop generalization.
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