Beyond the Training Horizon: Mechanisms and Limits of Length Generalization in Looped Transformers

Jia Liang, Xi Jin, Liangming Pan

Looped Transformers can generalize to reasoning chains longer than those encountered during training, but the computations enabling this behavior and limiting its extent remain unclear. We mechanistically compare two looped-Transformer configurations, which we call the Matched-Recurrence Looped Transformer (MR-Loop) and Decoupled-Recurrence Looped Transformer (DR-Loop), reflecting their respective recurrence-training schemes. We evaluate polynomial iteration, finite-state composition, and knowledge-graph traversal using detailed mechanistic analysis. Attention analysis, intermediate-state decoding, and causal interventions reveal distinct mechanisms learned under final-answer supervision. MR-Loop updates an intermediate state at a fixed readout while advancing relation selection through adjacent-token interactions and a transferable progress cue. DR-Loop instead propagates intermediate states across relation positions, forming an advancing computational frontier. However, both mechanisms become unreliable at greater depths: MR-Loop exhibits degradation of its readout state and progress cues, while DR-Loop exhibits declining reliability of state propagation. Limited…