# PhantomEnvironments: Training LLM Agents in Fictional Worlds

arXiv: https://arxiv.org/abs/2609.40221 · HTML: https://mlsanity.com/paper/2609.40221/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Reinforcement learning for LLM agents, one of 16 directions in LLM agents and tool use.
- Builds on 27 of its 50 references that are in the map.
- First posted on arXiv 30 Sep 2026.

## Placed in

- LLM agents and tool use / [Reinforcement learning for LLM agents](https://mlsanity.com/agents/reinforcement-learning-for-llm-agents/)

## Builds on (most cited first, 27 of 27)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Measuring Massive Multitask Language Understanding](https://mlsanity.com/paper/2009.03300/) (2020)
- [DeepSeek-R1: Incentivizing Reasoning Capability in LLMs via Reinforcement Learning](https://mlsanity.com/paper/2501.12948/) (2025)
- [Search-R1: Training LLMs to Reason and Leverage Search Engines with Reinforcement Learning](https://mlsanity.com/paper/2503.09516/) (2025)
- [Qwen3 Embedding: Advancing Text Embedding and Reranking Through Foundation Models](https://mlsanity.com/paper/2506.05176/) (2025)
- [Text Embeddings by Weakly-Supervised Contrastive Pre-training](https://mlsanity.com/paper/2212.03533/) (2022)
- [Does Reinforcement Learning Really Incentivize Reasoning Capacity in LLMs Beyond the Base Model?](https://mlsanity.com/paper/2504.13837/) (2025)
- [Phi-4-Mini Technical Report: Compact yet Powerful Multimodal Language Models via Mixture-of-LoRAs](https://mlsanity.com/paper/2503.01743/) (2025)
- [Cognitive Behaviors that Enable Self-Improving Reasoners, or, Four Habits of Highly Effective STaRs](https://mlsanity.com/paper/2503.01307/) (2025)
- [R1-Searcher: Incentivizing the Search Capability in LLMs via Reinforcement Learning](https://mlsanity.com/paper/2503.05592/) (2025)
- [ZeroSearch: Incentivize the Search Capability of LLMs without Searching](https://mlsanity.com/paper/2505.04588/) (2025)
- [BrowseComp-Plus: A More Fair and Transparent Evaluation Benchmark of Deep-Research Agent](https://mlsanity.com/paper/2508.06600/) (2025)
- [REASONING GYM: Reasoning Environments for Reinforcement Learning with Verifiable Rewards](https://mlsanity.com/paper/2505.24760/) (2025)
- [Retaining by Doing: The Role of On-Policy Data in Mitigating Forgetting](https://mlsanity.com/paper/2510.18874/) (2025)
- [StepSearch: Igniting LLMs Search Ability via Step-Wise Proximal Policy Optimization](https://mlsanity.com/paper/2505.15107/) (2025)
- [DeepDive: Advancing Deep Search Agents with Knowledge Graphs and Multi-Turn RL](https://mlsanity.com/paper/2509.10446/) (2025)
- [Endless Terminals: Scaling RL Environments for Terminal Agents](https://mlsanity.com/paper/2601.16443/) (2026)
- [An Empirical Study on Reinforcement Learning for Reasoning-Search Interleaved LLM Agents](https://mlsanity.com/paper/2505.15117/) (2025)
- [Synthetic Data Generation & Multi-Step RL for Reasoning & Tool Use](https://mlsanity.com/paper/2504.04736/) (2025)
- [Cofca: A Step-Wise Counterfactual Multi-hop QA benchmark](https://mlsanity.com/paper/2402.11924/) (2024)
- [GSM-Infinite: How Do Your LLMs Behave over Infinitely Increasing Context Length and Reasoning Complexity?](https://mlsanity.com/paper/2502.05252/) (2025)
- [PhantomWiki: On-Demand Datasets for Reasoning and Retrieval Evaluation](https://mlsanity.com/paper/2502.20377/) (2025)
- [Learning from Synthetic Data Improves Multi-hop Reasoning](https://mlsanity.com/paper/2603.02091/) (2026)
- [SynthWorlds: Controlled Parallel Worlds for Disentangling Reasoning and Knowledge in Language Models](https://mlsanity.com/paper/2510.24427/) (2025)
- [KARL: Knowledge Agents via Reinforcement Learning](https://mlsanity.com/paper/2603.05218/) (2026)

## Abstract (arXiv)

Training LLM agents with reinforcement learning (RL) is bottlenecked by environments, which must provide verifiable rewards, support long-horizon interaction, and scale cheaply. Existing approaches rely on costly human-curated data or on LLM-generated environments that risk hallucinations and benchmark contamination. We show that LLMs can instead be trained into capable search agents using synthetic environments generated entirely by rules, whose generation requires no LLM and has zero marginal cost. We build PhantomEnvironments, multi-turn RL environments from fictional worlds, where agents must search a corpus of templated articles to answer multi-hop questions. Despite sharing no facts with the real world, these strikingly simple environments yield agents that transfer to real-world multi-hop search benchmarks, often outperforming real-world training data on newer benchmarks. Trained agents generalize to unseen fictional universes, and Qwen models learn to scale their search budget roughly linearly with question difficulty, suggesting emergent search scaling from environment interaction alone. Ablating environment complexity reveals that hop count drives transfer more than constraints or comparisons: even the simplest rule-generated environments are a surprisingly effective, free resource for training generalizable LLM agents.