# LFD: Layer Fused Decoding to Exploit External Knowledge in Retrieval-Augmented Generation

arXiv: https://arxiv.org/abs/2508.19614 · HTML: https://mlsanity.com/paper/2508.19614/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in RAG robustness and adaptive retrieval, one of 15 directions in Retrieval-augmented generation.
- Builds on 48 of its 60 references that are in the map.
- First posted on arXiv 27 Aug 2025.

## Placed in

- Retrieval-augmented generation / [RAG robustness and adaptive retrieval](https://mlsanity.com/rag/rag-robustness-and-adaptive-retrieval/)

## Builds on (most cited first, 30 of 48)

- [Llama 2: Open Foundation and Fine-Tuned Chat Models](https://mlsanity.com/paper/2307.09288/) (2023)
- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Self-Consistency Improves Chain of Thought Reasoning in Language Models](https://mlsanity.com/paper/2203.11171/) (2022)
- [HotpotQA: A Dataset for Diverse, Explainable Multi-hop Question Answering](https://mlsanity.com/paper/1809.09600/) (2018)
- [Lost in the Middle: How Language Models Use Long Contexts](https://mlsanity.com/paper/2307.03172/) (2023)
- [REALM: Retrieval-Augmented Language Model Pre-Training](https://mlsanity.com/paper/2002.08909/) (2020)
- [Self-RAG: Learning to Retrieve, Generate, and Critique through Self-Reflection](https://mlsanity.com/paper/2310.11511/) (2023)
- [Improving Factuality and Reasoning in Language Models through Multiagent Debate](https://mlsanity.com/paper/2305.14325/) (2023)
- [From Local to Global: A Graph RAG Approach to Query-Focused Summarization](https://mlsanity.com/paper/2404.16130/) (2024)
- [Transformer Feed-Forward Layers Are Key-Value Memories](https://mlsanity.com/paper/2012.14913/) (2020)
- [Improving language models by retrieving from trillions of tokens](https://mlsanity.com/paper/2112.04426/) (2021)
- [Constructing A Multi-hop QA Dataset for Comprehensive Evaluation of Reasoning Steps](https://mlsanity.com/paper/2011.01060/) (2020)
- [DeepSeek LLM: Scaling Open-Source Language Models with Longtermism](https://mlsanity.com/paper/2401.02954/) (2024)
- [Eliciting Latent Predictions from Transformers with the Tuned Lens](https://mlsanity.com/paper/2303.08112/) (2023)
- [Knowledge Neurons in Pretrained Transformers](https://mlsanity.com/paper/2104.08696/) (2021)
- [Active Retrieval Augmented Generation](https://mlsanity.com/paper/2305.06983/) (2023)
- [Large Language Models Struggle to Learn Long-Tail Knowledge](https://mlsanity.com/paper/2211.08411/) (2022)
- [A Survey on RAG Meeting LLMs: Towards Retrieval-Augmented Large Language Models](https://mlsanity.com/paper/2405.06211/) (2024)
- [Adaptive-RAG: Learning to Adapt Retrieval-Augmented Large Language Models through Question Complexity](https://mlsanity.com/paper/2403.14403/) (2024)
- [A Systematic Survey of Prompt Engineering in Large Language Models: Techniques and Applications](https://mlsanity.com/paper/2402.07927/) (2024)
- [LoRA+: Efficient Low Rank Adaptation of Large Models](https://mlsanity.com/paper/2402.12354/) (2024)
- [DoLa: Decoding by Contrasting Layers Improves Factuality in Large Language Models](https://mlsanity.com/paper/2309.03883/) (2023)
- [Benchmarking Large Language Models in Retrieval-Augmented Generation](https://mlsanity.com/paper/2309.01431/) (2023)
- [ReConcile: Round-Table Conference Improves Reasoning via Consensus among Diverse LLMs](https://mlsanity.com/paper/2309.13007/) (2023)
- [RAGTruth: A Hallucination Corpus for Developing Trustworthy Retrieval-Augmented Language Models](https://mlsanity.com/paper/2401.00396/) (2023)
- [The Power of Noise: Redefining Retrieval for RAG Systems](https://mlsanity.com/paper/2401.14887/) (2024)
- [Aging with GRACE: Lifelong Model Editing with Discrete Key-Value Adaptors](https://mlsanity.com/paper/2211.11031/) (2022)
- [Unlocking Efficiency in Large Language Model Inference: A Comprehensive Survey of Speculative Decoding](https://mlsanity.com/paper/2401.07851/) (2024)
- [A Contrastive Framework for Neural Text Generation](https://mlsanity.com/paper/2202.06417/) (2022)

## Abstract (arXiv)

Retrieval-augmented generation (RAG) incorporates external knowledge into large language models (LLMs), improving their adaptability to downstream tasks and enabling information updates. Surprisingly, recent empirical evidence demonstrates that injecting noise into retrieved relevant documents paradoxically facilitates exploitation of external knowledge and improves generation quality. Although counterintuitive and challenging to apply in practice, this phenomenon enables granular control and rigorous analysis of how LLMs integrate external knowledge. Therefore, in this paper, we intervene on noise injection and establish a layer-specific functional demarcation within the LLM: shallow layers specialize in local context modeling, intermediate layers focus on integrating long-range external factual knowledge, and deeper layers primarily rely on parametric internal knowledge. Building on this insight, we propose Layer Fused Decoding (LFD), a simple decoding strategy that directly combines representations from an intermediate layer with final-layer decoding outputs to fully exploit the external factual knowledge. To identify the optimal intermediate layer, we introduce an internal knowledge score (IKS) criterion that selects the layer with the lowest IKS value in the latter half of layers. Experimental results across multiple benchmarks demonstrate that LFD helps RAG systems more effectively surface retrieved context knowledge with minimal cost.