Tracing and Dissecting How LLMs Recall Factual Knowledge for Real World Questions

Recent advancements in large language models (LLMs) have shown promising ability to perform commonsense reasoning, bringing machines closer to human-like understanding. However, deciphering the internal reasoning processes of LLMs remains challenging due to the complex interdependencies among generated tokens, especially in practical question-answering. In this study, we introduce a two-dimensional analysis framework—comprising token back-tracing and individual token decod-ing—to uncover how LLMs conduct factual knowledge recall. Through explanatory analysis of three typical reasoning datasets, we identify a consistent three-phase pattern: Subject Augmentation and Broadcasting, Object Retrieval and Reranking, and Conclusion Fusion and Generation. Our findings reveal that LLMs do not lack relevant knowledge but struggle to select the most accurate information based on context during the retrieval and rerank phase. Leveraging these findings, we apply representation engineering and selective fine-tuning to target specific modules responsible for retrieval and rerank errors. Experimental results show large improvements in response accuracy for both in-domain and out-of-domain settings, validating the rationality of the interpreting result.