# Latent Reasoning with Supervised Thinking States

arXiv: https://arxiv.org/abs/2602.08332 · HTML: https://mlsanity.com/paper/2602.08332/

## Key facts

- Cited by 9 papers in the map (data through 14 Oct 2026).
- Placed in Prompting and chain-of-thought reasoning, one of 17 directions in LLM reasoning.
- Builds on 20 of its 22 references that are in the map.
- First posted on arXiv 9 Feb 2026.

## Placed in

- LLM reasoning / [Prompting and chain-of-thought reasoning](https://mlsanity.com/lr/prompting-and-chain-of-thought-reasoning/)

## Builds on (most cited first, 20 of 20)

- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Qwen2.5 Technical Report](https://mlsanity.com/paper/2412.15115/) (2024)
- [Gemini 2.5: Pushing the Frontier with Advanced Reasoning, Multimodality, Long Context, and Next Generation Agentic Capabilities](https://mlsanity.com/paper/2507.06261/) (2025)
- [Training Large Language Models to Reason in a Continuous Latent Space](https://mlsanity.com/paper/2412.06769/) (2024)
- [Scaling up Test-Time Compute with Latent Reasoning: A Recurrent Depth Approach](https://mlsanity.com/paper/2502.05171/) (2025)
- [Quiet-STaR: Language Models Can Teach Themselves to Think Before Speaking](https://mlsanity.com/paper/2403.09629/) (2024)
- [Think before you speak: Training Language Models With Pause Tokens](https://mlsanity.com/paper/2310.02226/) (2023)
- [TokenSkip: Controllable Chain-of-Thought Compression in LLMs](https://mlsanity.com/paper/2502.12067/) (2025)
- [From Explicit CoT to Implicit CoT: Learning to Internalize CoT Step by Step](https://mlsanity.com/paper/2405.14838/) (2024)
- [CODI: Compressing Chain-of-Thought into Continuous Space via Self-Distillation](https://mlsanity.com/paper/2502.21074/) (2025)
- [Neural Networks and the Chomsky Hierarchy](https://mlsanity.com/paper/2207.02098/) (2022)
- [Exploring Length Generalization in Large Language Models](https://mlsanity.com/paper/2207.04901/) (2022)
- [Implicit Chain of Thought Reasoning via Knowledge Distillation](https://mlsanity.com/paper/2311.01460/) (2023)
- [C3oT: Generating Shorter Chain-of-Thought without Compromising Effectiveness](https://mlsanity.com/paper/2412.11664/) (2024)
- [Don't Overthink it. Preferring Shorter Thinking Chains for Improved LLM Reasoning](https://mlsanity.com/paper/2505.17813/) (2025)
- [Hopping Too Late: Exploring the Limitations of Large Language Models on Multi-Hop Queries](https://mlsanity.com/paper/2406.12775/) (2024)
- [From Tokens to Words: On the Inner Lexicon of LLMs](https://mlsanity.com/paper/2410.05864/) (2024)
- [Entity Tracking in Language Models](https://mlsanity.com/paper/2305.02363/) (2023)
- [(How) Do Language Models Track State?](https://mlsanity.com/paper/2503.02854/) (2025)
- [Do Large Language Models Perform Latent Multi-Hop Reasoning without Exploiting Shortcuts?](https://mlsanity.com/paper/2411.16679/) (2024)

## Built on by (most cited first, 9 of 9)

- [The Latent Space: Foundation, Evolution, Mechanism, Ability, and Outlook](https://mlsanity.com/paper/2604.02029/) (2026)
- [Bridging the Gap Between Latent and Explicit Reasoning with Looped Transformers](https://mlsanity.com/paper/2606.31779/) (2026)
- [Latent On-Policy Self-Distillation](https://mlsanity.com/paper/2608.13040/) (2026)
- [Token Economics for LLM Agents: A Dual-View Study from Computing and Economics](https://mlsanity.com/paper/2605.09104/) (2026)
- [LPG: Balancing Efficiency and Policy Reasoning in Latent Policy Guardrails](https://mlsanity.com/paper/2605.17329/) (2026)
- [Continuous Latent Contexts Enable Efficient Online Learning in Transformers](https://mlsanity.com/paper/2605.09867/) (2026)
- [Thinking With Tools, Not With Pixels: Tool Calls as Text Scaffolds for Visual Reasoning](https://mlsanity.com/paper/2608.09682/) (2026)
- [Pretraining Latent Information Feedback Transformers with Teacher Supervision](https://mlsanity.com/paper/2609.38149/) (2026)
- [Making LLMs Say What They Think: Measuring and Improving CoT-Interpretability Alignment](https://mlsanity.com/paper/2609.38972/) (2026)

## Abstract (arXiv)

Reasoning with a chain-of-thought (CoT) enables Large Language Models (LLMs) to solve complex tasks but incurs significant inference costs due to the generation of long rationales. We propose Thinking States, a method that performs reasoning em while the input is processing. Specifically, Thinking States generates sequences of thinking tokens every few input tokens, transforms the thoughts back into embedding space, and adds them to the following input tokens. This has two key advantages. First, it captures the recurrent nature of CoT, but where the thought tokens are generated as input is processing. Second, since the thoughts are represented as tokens, they can be learned from natural language supervision, and using teacher-forcing, which is parallelizable. Empirically, Thinking States outperforms other latent reasoning methods on multiple reasoning tasks, narrowing the gap to CoT on math problems, and matching its performance on 2-Hop QA with improved latency. On state-tracking tasks, we show Thinking States leads to stronger reasoning behavior than CoT, successfully extrapolating to longer sequences than seen during training.