# Adapting Context Compression for Long-Horizon Agents with Counterfactual Continuations

arXiv: https://arxiv.org/abs/2609.36526 · HTML: https://mlsanity.com/paper/2609.36526/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Efficient reasoning and agent inference, one of 12 directions in Efficient LLM inference and serving.
- Builds on 19 of its 49 references that are in the map.
- First posted on arXiv 29 Sep 2026.

## Placed in

- Efficient LLM inference and serving / [Efficient reasoning and agent inference](https://mlsanity.com/inference/efficient-reasoning-and-agent-inference/)

## Builds on (most cited first, 19 of 19)

- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [WebArena: A Realistic Web Environment for Building Autonomous Agents](https://mlsanity.com/paper/2307.13854/) (2023)
- [τ2-Bench: Evaluating Conversational Agents in a Dual-Control Environment](https://mlsanity.com/paper/2506.07982/) (2025)
- [Executable Code Actions Elicit Better LLM Agents](https://mlsanity.com/paper/2402.01030/) (2024)
- [LongLLMLingua: Accelerating and Enhancing LLMs in Long Context Scenarios via Prompt Compression](https://mlsanity.com/paper/2310.06839/) (2023)
- [AppWorld: A Controllable World of Apps and People for Benchmarking Interactive Coding Agents](https://mlsanity.com/paper/2407.18901/) (2024)
- [Learning to Compress Prompts with Gist Tokens](https://mlsanity.com/paper/2304.08467/) (2023)
- [Adapting Language Models to Compress Contexts](https://mlsanity.com/paper/2305.14788/) (2023)
- [LLMLingua-2: Data Distillation for Efficient and Faithful Task-Agnostic Prompt Compression](https://mlsanity.com/paper/2403.12968/) (2024)
- [MEM1: Learning to Synergize Memory and Reasoning for Efficient Long-Horizon Agents](https://mlsanity.com/paper/2506.15841/) (2025)
- [In-context Autoencoder for Context Compression in a Large Language Model](https://mlsanity.com/paper/2307.06945/) (2023)
- [Compressing Context to Enhance Inference Efficiency of Large Language Models](https://mlsanity.com/paper/2310.06201/) (2023)
- [Which Agent Causes Task Failures and When? On Automated Failure Attribution of LLM Multi-Agent Systems](https://mlsanity.com/paper/2505.00212/) (2025)
- [ReSum: Unlocking Long-Horizon Search Intelligence via Context Summarization](https://mlsanity.com/paper/2509.13313/) (2025)
- [ACON: Optimizing Context Compression for Long-horizon LLM Agents](https://mlsanity.com/paper/2510.00615/) (2025)
- [OfficeBench: Benchmarking Language Agents across Multiple Applications for Office Automation](https://mlsanity.com/paper/2407.19056/) (2024)
- [Scaling LLM Multi-turn RL with End-to-end Summarization-based Context Management](https://mlsanity.com/paper/2510.06727/) (2025)
- [TACO-RL: Task Aware Prompt Compression Optimization with Reinforcement Learning](https://mlsanity.com/paper/2409.13035/) (2024)

## Abstract (arXiv)

Long-horizon agents require context compression to manage growing interaction histories. Compression quality, however, is ultimately determined by downstream execution. Existing prompt-adaptation methods infer compression errors by comparing full-context and compressed trajectories. Such comparisons cannot isolate individual compressions and are confounded by agent stochasticity. We first find that compression degrades reliability before solvability. Using matched counterfactual continuations that compare execution from the same agent state with versus without compression, we further show that severe degradation concentrates at isolated compression events. Motivated by this finding, we propose PAIR (Prompt Adaptation using Interventional Rollouts) for adapting structured compression prompts. PAIR identifies individual compressions that degrade subsequent execution, diagnoses their effects, and revises the relevant sections of a fixed compression template. PAIR achieves the strongest cross-run reliability among compressed methods in every main benchmark-scope combination, consistently exceeding the competing prompt-adaptation baseline. Without modifying the downstream agent, PAIR brings compressed execution close to the no-compression baseline and sometimes numerically exceeds it.