# Learning from Failures: Heterogeneous Graph Memory for Small Language Model Tool-Using Agents

arXiv: https://arxiv.org/abs/2609.28003 · HTML: https://mlsanity.com/paper/2609.28003/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Tool learning and function calling, one of 16 directions in LLM agents and tool use.
- Builds on 10 of its 15 references that are in the map.
- First posted on arXiv 23 Sep 2026.

## Placed in

- LLM agents and tool use / [Tool learning and function calling](https://mlsanity.com/agents/tool-learning-and-function-calling/)

## Builds on (most cited first, 10 of 10)

- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs](https://mlsanity.com/paper/2307.16789/) (2023)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [Gorilla: Large Language Model Connected with Massive APIs](https://mlsanity.com/paper/2305.15334/) (2023)
- [ExpeL: LLM Agents Are Experiential Learners](https://mlsanity.com/paper/2308.10144/) (2023)
- [Gemma 4 Technical Report](https://mlsanity.com/paper/2607.02770/) (2026)
- [MobileLLM: Optimizing Sub-billion Parameter Language Models for On-Device Use Cases](https://mlsanity.com/paper/2402.14905/) (2024)
- [Experience-Evolving Multi-Turn Tool-Use Agent with Hybrid Episodic-Procedural Memory](https://mlsanity.com/paper/2512.07287/) (2025)

## Abstract (arXiv)

Small and medium-sized language models offer cost-effective executors for tool-using agents, making them attractive for local and large-scale deployment. However, in long-horizon and stateful environments, they often make structural errors such as missing required observations, performing premature writes, repeating failed calls, and violating action preconditions. These errors can lead to incorrect state updates, policy violations, and costly or irreversible consequences, making reliable tool execution a critical deployment challenge. Existing fine-tuning approaches require substantial data and computation, while flat memory may retrieve failed actions without preserving their causal context or safety conditions. In this paper, we propose FRESH, a Failure-aware Retrieval framework over Experience-Structured Heterogeneous graphs, which transforms historical successes and failures into structured external experience for tool-using agents. By explicitly modeling the dependencies among tasks, actions, errors, repairs, and execution conditions, FRESH helps frozen language models reuse reliable strategies, avoid recurring failures, and make safer decisions in stateful tool interactions. Experiments on τ-Bench and AppWorld with multiple open-source models show that FRESH consistently improves task success and tool-use reliability over no-memory agents and representative memory-based baselines.