5f1cb1d23261b19cbd45f90f7b4f251f-Paper-Conference.pdf

Recent work suggests that large language models (LLMs) can perform multi-hop reasoning implicitly--producing correct answers without explicitly verbalizing intermediate steps--but the underlying mechanisms remain poorly understood. In this paper, we study how such implicit reasoning emerges by training transformers from scratch in a controlled symbolic environment. Our analysis reveals a threestage developmental trajectory: early memorization, followed by in-distribution generalization, and eventually cross-distribution generalization. We find that training with atomic triples is not necessary but accelerates learning, and that second-hop generalization relies on query-level exposure to specific compositional structures. To interpret these behaviors, we introduce two diagnostic tools: cross-query semantic patching, which identifies semantically reusable intermediate representations, and a cosine-based representational lens, which reveals that successful reasoning correlates with the cosine-base clustering in hidden space. This clustering phenomenon in turn provides a coherent explanation for the behavioral dynamics observed across training, linking representational structure to reasoning capability. These findings provide new insights into the interpretability of implicit multi-hop reasoning in LLMs, helping to clarify how complex reasoning processes unfold internally and offering pathways to enhance the transparency of such models.