Plan or Retrieve First? A Scale Study of Tool Discovery Architectures

Mingfei Zhang, Amit Surana, Ziauddin Majid, Chenxi Wang, Michael Xu

Tool-augmented LLM agents discover relevant APIs from large registries before planning execution, yet finite context windows prohibit injecting all tool definitions into a single prompt. The dominant approach, which we term Retrieve-then-Plan (RtP), embeds the user query and retrieves similar tools via approximate nearest-neighbor search. We study an alternative Plan-then-Retrieve (PtR) paradigm in which the LLM first generates Abstract Tool Stubs (hypothesized function signatures describing needed capabilities) which then serve as retrieval queries against the registry. Evaluating on ToolBench (46,984 unique API endpoints, 50 categories) across single-tool (G1), intra-category multi-tool (G2), and cross-category multi-tool (G3) query subsets, we find a clear complexity-dependent crossover: RtP outperforms PtR on single-tool queries while PtR outperforms RtP on multi-tool queries. This crossover holds at every retrieval budget (k=1 to 20), is robust across registry sizes from 1k to 47k APIs, and is consistent across model families (Gemini 2.5 Flash and gpt-oss-120b). We characterize a stub-hallucination failure mode (the LLM invents plausible but non-existent API names) that acts…