Authors Haoqiang Kang†, Yizhe Zhang, Nikki Lijing Kuang†, Nicklas Majamaki†, Navdeep Jaitly, Yi-An Ma†, Lianhui Qin†

Large Language Models (LLMs) demonstrate their reasoning ability through chain-of-thought (CoT) generation. However, LLM’s autoregressive decoding may limit the ability to revisit and refine earlier tokens in a holistic manner, which can also lead to inefficient exploration for diverse solutions. In this paper, we propose LaDiR (Latent Diffusion Reasoner), a novel reasoning framework that unifies the expressiveness of continuous latent representation with the iterative refinement capabilities of latent diffusion models for an existing LLM. We first construct a structured latent reasoning space using a Variational Autoencoder (VAE) that encodes text reasoning steps into blocks of thought tokens, preserving semantic information and interpretability while offering compact but expressive representations. Subsequently, we utilize a latent diffusion model that learns to denoise a block of latent thought tokens with a blockwise bidirectional attention mask, enabling longer horizon and iterative refinement with adaptive test-time compute. This design allows efficient parallel generation of diverse reasoning trajectories, allowing the model to plan and revise the reasoning process holistically. We conduct evaluations on a suite of mathematical reasoning and planning benchmarks. Empirical results show that LaDiR consistently improves accuracy, diversity, and interpretability over existing autoregressive, diffusion-based, and latent reasoning methods, revealing a new paradigm for text reasoning with latent diffusion.

  • † University of California, San Diego

Related readings and updates.

This paper was accepted at the Workshop on Latent & Implicit Thinking – Going Beyond CoT Reasoning 2026 at ICLR.

Autoregressive language models trained with next-token prediction generate text by sampling one discrete token at a time. Although very scalable, this objective forces the model to commit at every step, preventing it from exploring or reflecting upon multiple plausible continuations. Furthermore, the compute allocation across tokens…

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