# Accurate and Efficient World Modeling with Masked Latent Transformers

arXiv: https://arxiv.org/abs/2507.04075 · HTML: https://mlsanity.com/paper/2507.04075/

## Key facts

- Cited by 7 papers in the map (data through 14 Oct 2026).
- Placed in Latent dynamics models and model-based RL, one of 11 directions in World models.
- Builds on 33 of its 38 references that are in the map.
- First posted on arXiv 5 Jul 2025.

## Placed in

- World models / [Latent dynamics models and model-based RL](https://mlsanity.com/wm/latent-dynamics-models-and-model-based-rl/)

## Builds on (most cited first, 30 of 33)

- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [Deep Unsupervised Learning using Nonequilibrium Thermodynamics](https://mlsanity.com/paper/1503.03585/) (2015)
- [Layer Normalization](https://mlsanity.com/paper/1607.06450/) (2016)
- [Neural Discrete Representation Learning](https://mlsanity.com/paper/1711.00937/) (2017)
- [Zero-Shot Text-to-Image Generation](https://mlsanity.com/paper/2102.12092/) (2021)
- [Learning Phrase Representations using RNN Encoder-Decoder for Statistical Machine Translation](https://mlsanity.com/paper/1406.1078/) (2014)
- [Taming Transformers for High-Resolution Image Synthesis](https://mlsanity.com/paper/2012.09841/) (2020)
- [Elucidating the Design Space of Diffusion-Based Generative Models](https://mlsanity.com/paper/2206.00364/) (2022)
- [Estimating or Propagating Gradients Through Stochastic Neurons for Conditional Computation](https://mlsanity.com/paper/1308.3432/) (2013)
- [Transformer-XL: Attentive Language Models Beyond a Fixed-Length Context](https://mlsanity.com/paper/1901.02860/) (2019)
- [Dream to Control: Learning Behaviors by Latent Imagination](https://mlsanity.com/paper/1912.01603/) (2019)
- [Mastering Atari, Go, Chess and Shogi by Planning with a Learned Model](https://mlsanity.com/paper/1911.08265/) (2019)
- [Learning Latent Dynamics for Planning from Pixels](https://mlsanity.com/paper/1811.04551/) (2018)
- [Mastering Diverse Domains through World Models](https://mlsanity.com/paper/2301.04104/) (2023)
- [MaskGIT: Masked Generative Image Transformer](https://mlsanity.com/paper/2202.04200/) (2022)
- [Mastering Atari with Discrete World Models](https://mlsanity.com/paper/2010.02193/) (2020)
- [DeepMind Control Suite](https://mlsanity.com/paper/1801.00690/) (2018)
- [Recurrent World Models Facilitate Policy Evolution](https://mlsanity.com/paper/1809.01999/) (2018)
- [Model-Based Reinforcement Learning for Atari](https://mlsanity.com/paper/1903.00374/) (2019)
- [Transformers are Sample-Efficient World Models](https://mlsanity.com/paper/2209.00588/) (2022)
- [Diffusion for World Modeling: Visual Details Matter in Atari](https://mlsanity.com/paper/2405.12399/) (2024)
- [Benchmarking the Spectrum of Agent Capabilities](https://mlsanity.com/paper/2109.06780/) (2021)
- [Bigger, Better, Faster: Human-level Atari with human-level efficiency](https://mlsanity.com/paper/2305.19452/) (2023)
- [TransDreamer: Reinforcement Learning with Transformer World Models](https://mlsanity.com/paper/2202.09481/) (2022)
- [Transformer-based World Models Are Happy With 100k Interactions](https://mlsanity.com/paper/2303.07109/) (2023)
- [STORM: Efficient Stochastic Transformer based World Models for Reinforcement Learning](https://mlsanity.com/paper/2310.09615/) (2023)
- [Temporally Consistent Transformers for Video Generation](https://mlsanity.com/paper/2210.02396/) (2022)
- [Evaluating Long-Term Memory in 3D Mazes](https://mlsanity.com/paper/2210.13383/) (2022)
- [The MineRL 2020 Competition on Sample Efficient Reinforcement Learning using Human Priors](https://mlsanity.com/paper/2101.11071/) (2021)
- [EfficientZero V2: Mastering Discrete and Continuous Control with Limited Data](https://mlsanity.com/paper/2403.00564/) (2024)

## Built on by (most cited first, 7 of 7)

- [LLM-based Agents Suffer from Hallucinations: A Survey of Taxonomy, Methods, and Directions](https://mlsanity.com/paper/2509.18970/) (2025)
- [VideoWorld 2: Learning Transferable Knowledge from Real-world Videos](https://mlsanity.com/paper/2602.10102/) (2026)
- [Human Cognition in Machines: A Unified Perspective of World Models](https://mlsanity.com/paper/2604.16592/) (2026)
- [Looped World Models](https://mlsanity.com/paper/2606.18208/) (2026)
- [Stochastic Siamese MAE Pretraining for Longitudinal Medical Images](https://mlsanity.com/paper/2512.23441/) (2025)
- [CyberWorld: World Models for Sample-Efficient Autonomous Cyber Defense](https://mlsanity.com/paper/2609.31893/) (2026)
- [Lucid Dreaming for World Models: Learning to Doubt Imagination and Decide by Trust](https://mlsanity.com/paper/2609.37156/) (2026)

## Abstract (arXiv)

The Dreamer algorithm has recently obtained remarkable performance across diverse environment domains by training powerful agents with simulated trajectories. However, the compressed nature of its world model's latent space can result in the loss of crucial information, negatively affecting the agent's performance. Recent approaches, such as Delta-IRIS and DIAMOND, address this limitation by training more accurate world models. However, these methods require training agents directly from pixels, which reduces training efficiency and prevents the agent from benefiting from the inner representations learned by the world model. In this work, we propose an alternative approach to world modeling that is both accurate and efficient. We introduce EMERALD (Efficient MaskEd latent tRAnsformer worLD model), a world model using a spatial latent state with MaskGIT predictions to generate accurate trajectories in latent space and improve the agent performance. On the Crafter benchmark, EMERALD achieves new state-of-the-art performance, becoming the first method to surpass human experts performance within 10M environment steps. Our method also succeeds to unlock all 22 Crafter achievements at least once during evaluation.