REFACT: Adaptive Fact Restatement for Compact and Faithful Chain-of-Thought Reasoning
Large Language Models (LLMs) increasingly leverage long-form reasoning to solve complex tasks, yet their reasoning processes can deviate from the provided context when evidence is incomplete, noisy, or conflicts with parametric knowledge. Existing grounding approaches either append citations after generation or encourage LLMs to retrieve evidence during reasoning, but they often fail to ensure that cited information is sufficient to support intermediate inferences and final answers. To address this limitation, we propose REFACT, an adaptive fact-restatement citation framework that enables LLMs to determine when contextual grounding is needed and selectively restate source facts at appropriate levels of detail for reliable reasoning. To facilitate adaptive citation during reasoning, REFACT first leverages a teacher LLM to construct high-quality citation-aware reasoning trajectories under diverse context conditions with varying evidence lengths, and then optimizes the student LLM through a two-stage SFT-to-RL framework. Experiments on LongBench, LV-Eval, and ConFiQA demonstrate that REFACT improves long-context question answering and counterfactual faithfulness while substantially reducing the number of reasoning tokens. Further analysis reveals that REFACT achieves higher evidence density by preserving more answer-relevant facts with fewer restatements, producing reasoning traces that are more concise yet better grounded. All code and data will be released via https://github.com/NEUIR/REFACT.