Understanding the ReAct Framework: Giving LLMs the Ability to Reason and Act
Posted on November 12, 2025

In the rapidly evolving field of artificial intelligence, large language models (LLMs) have impressed us with their ability to write, chat, and summarize. However, they have traditionally operated in a "closed world." Ask one a question, and it generates an answer based solely on the data it was trained on, without the ability to check new facts or perform real-world tasks. This can lead to "fact hallucination" or an inability to solve multi-step problems.
Enter the ReAct framework, a groundbreaking approach that gives LLMs a new set of capabilities. ReAct, which stands for "Reasoning and Acting," transforms a passive LLM into an active "agent." It's a system inspired by the way humans solve problems: we think, we act, we observe the result, and then we think again.
This framework was introduced by Yao et al. in 2022 to allow LLMs to generate not just text, but also reasoning traces and task-specific actions in an interleaved manner. This synergy allows the AI to create and update action plans, handle exceptions, and, most importantly, interact with the outside world.
How It Works: The Thought-Action-Observation Loop
At the heart of the ReAct framework is a simple but powerful loop. Instead of just outputting a final answer, the agent repeats a three-step process:
- Thought: The agent first reasons about the task. It analyzes the user's request, breaks it down into smaller steps, and forms a plan. This is an internal monologue, like, "The user is asking a complex question. I first need to find piece of information A."
- Action: Based on its thought, the agent then chooses an action to perform. This isn't just writing text; it's deciding to use an external tool. This could be
Search[price of gold]orCalculator[98000 * 150000]. - Observation: The agent receives the observation from its action, the search result, the answer from the calculator, or an error message.
This observation then feeds into the next thought. The agent might think, "Okay, I found piece A. Now I need to use this information to find piece B." This Thought-Action-Observation loop continues until the agent has gathered all the information it needs to formulate a complete and accurate final answer.
The Core Components of a ReAct Agent
To function, a ReAct agent relies on several key components working in concert:
- 1. The "Brain" (The LLM): This is a powerful language model that provides the core planning and reasoning capabilities. It's the "thought" part of the loop.
- 2. The "Hands" (External Tools): This is a "toolbox" of utilities the agent can use. It can include anything from a
Calculatorfor precise math to aSearchAPI for accessing real-time information, overcoming tasks LLMs traditionally struggle with. - 3. The "Rulebook" (The Agent Framework): This is the core logic that connects the LLM to the tools. Often implemented using a library (like LangChain), this framework is the "operating system" that tells the agent how to follow the ReAct loop and decide which action to take.
- 4. The "Notebook" (Memory): To be effective, an agent needs to remember what it has already done. A memory component stores the history of thoughts, actions, and observations, allowing the agent to refer to previous steps and avoid repeating work.
Why This Matters: From Chatbot to "Do-bot"
The ReAct framework is a significant leap forward for AI for two main reasons:
- Knowledge-Intensive Tasks: For complex questions that require piecing together multiple facts (like those on the HotPotQA benchmark), ReAct agents can dynamically search for, retrieve, and synthesize information, leading to more reliable and factual answers.
- Decision-Making Tasks: In interactive environments, like text-based games (ALFWorld) or simulated shopping websites (WebShop), ReAct agents can navigate complex decision trees, explore their options, and act to achieve a goal.
By combining the reasoning power of LLMs with the ability to act and gather new information, ReAct agents become more trustworthy, interpretable (we can read their "thoughts"), and capable. They are a foundational step away from simple chatbots and toward the complex, "agentic systems" that can understand a goal, make a plan, and execute it in the real world.