# Fine-Tuning vs. RAG for Multi-Hop Question Answering with Novel Knowledge

arXiv: https://arxiv.org/abs/2601.07054 · HTML: https://mlsanity.com/paper/2601.07054/

## Key facts

- Cited by 4 papers in the map (data through 14 Oct 2026).
- Placed in Knowledge- and tool-augmented reasoning, one of 17 directions in LLM reasoning.
- Builds on 26 of its 28 references that are in the map.
- First posted on arXiv 11 Jan 2026.

## Placed in

- LLM reasoning / [Knowledge- and tool-augmented reasoning](https://mlsanity.com/lr/knowledge-and-tool-augmented-reasoning/)
- Retrieval-augmented generation / [Knowledge-graph and structured-knowledge RAG](https://mlsanity.com/rag/knowledge-graph-and-structured-knowledge-rag/)

## Builds on (most cited first, 26 of 26)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [GPT-4 Technical Report](https://mlsanity.com/paper/2303.08774/) (2023)
- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [LLaMA: Open and Efficient Foundation Language Models](https://mlsanity.com/paper/2302.13971/) (2023)
- [Llama 2: Open Foundation and Fine-Tuned Chat Models](https://mlsanity.com/paper/2307.09288/) (2023)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [Measuring Massive Multitask Language Understanding](https://mlsanity.com/paper/2009.03300/) (2020)
- [HotpotQA: A Dataset for Diverse, Explainable Multi-hop Question Answering](https://mlsanity.com/paper/1809.09600/) (2018)
- [Mistral 7B](https://mlsanity.com/paper/2310.06825/) (2023)
- [Billion-scale similarity search with GPUs](https://mlsanity.com/paper/1702.08734/) (2017)
- [Shortcut Learning in Deep Neural Networks](https://mlsanity.com/paper/2004.07780/) (2020)
- [Language Models as Knowledge Bases?](https://mlsanity.com/paper/1909.01066/) (2019)
- [Self-RAG: Learning to Retrieve, Generate, and Critique through Self-Reflection](https://mlsanity.com/paper/2310.11511/) (2023)
- [Don't Stop Pretraining: Adapt Language Models to Domains and Tasks](https://mlsanity.com/paper/2004.10964/) (2020)
- [Constructing A Multi-hop QA Dataset for Comprehensive Evaluation of Reasoning Steps](https://mlsanity.com/paper/2011.01060/) (2020)
- [MuSiQue: Multihop Questions via Single-hop Question Composition](https://mlsanity.com/paper/2108.00573/) (2021)
- [C-Pack: Packed Resources For General Chinese Embeddings](https://mlsanity.com/paper/2309.07597/) (2023)
- [Active Retrieval Augmented Generation](https://mlsanity.com/paper/2305.06983/) (2023)
- [UnifiedQA: Crossing Format Boundaries With a Single QA System](https://mlsanity.com/paper/2005.00700/) (2020)
- [QASC: A Dataset for Question Answering via Sentence Composition](https://mlsanity.com/paper/1910.11473/) (2019)
- [Fine-Tuning or Retrieval? Comparing Knowledge Injection in LLMs](https://mlsanity.com/paper/2312.05934/) (2023)
- [Automating Customer Service using LangChain: Building custom open-source GPT Chatbot for organizations](https://mlsanity.com/paper/2310.05421/) (2023)
- [Chain-of-Retrieval Augmented Generation](https://mlsanity.com/paper/2501.14342/) (2025)
- [Question Answering as Global Reasoning over Semantic Abstractions](https://mlsanity.com/paper/1906.03672/) (2019)
- [When Fine-Tuning Fails: Lessons from MS MARCO Passage Ranking](https://mlsanity.com/paper/2506.18535/) (2025)

## Built on by (most cited first, 4 of 4)

- [Contextual Agentic Memory is a Memo, Not True Memory](https://mlsanity.com/paper/2604.27707/) (2026)
- [Core-based Hierarchies for Efficient GraphRAG](https://mlsanity.com/paper/2603.05207/) (2026)
- [Knowledge-Graph Based Augmentation versus Retrieval Augmented Generation for Cultural-Related Question Answering](https://mlsanity.com/paper/2609.18317/) (2026)
- [ORDER: A Fictitious-World Benchmark for Domain-Adaptive Embodied AI](https://mlsanity.com/paper/2609.22285/) (2026)

## Abstract (arXiv)

Multi-hop question answering is widely used to evaluate the reasoning capabilities of large language models (LLMs), as it requires integrating multiple pieces of supporting knowledge to arrive at a correct answer. While prior work has explored different mechanisms for providing knowledge to LLMs, such as finetuning and retrieval-augmented generation (RAG), their relative effectiveness for multi-hop question answering remains insufficiently understood, particularly when the required knowledge is temporally novel. In this paper, we systematically compare parametric and non-parametric knowledge injection methods for open-domain multi-hop question answering. We evaluate unsupervised fine-tuning (continual pretraining), supervised fine-tuning, and retrieval-augmented generation across three 7B-parameter open-source LLMs. Experiments are conducted on two benchmarks: QASC, a standard multi-hop science question answering dataset, and a newly constructed dataset of over 10,000 multi-hop questions derived from Wikipedia events in 2024, designed to test knowledge beyond the models' pretraining cutoff. Our results show that unsupervised fine-tuning provides only limited gains over base models, suggesting that continual pretraining alone is insufficient for improving multi-hop reasoning accuracy. In contrast, retrieval-augmented generation yields substantial and consistent improvements, particularly when answering questions that rely on temporally novel information. Supervised fine-tuning achieves the highest overall accuracy across models and datasets. These findings highlight fundamental differences in how knowledge injection mechanisms support multi-hop question answering and underscore the importance of retrieval-based methods when external or compositional knowledge is required.
