Extending the context length of large language models (LLMs) is critical for many real-world applications, yet standard transformers remain constrained by quadratic compute and linear memory scaling. In this work, we investigate the Associative Recurrent Memory Transformer (ARMT) as a practical approach for enabling long-context processing in LLMs, constant memory scaling, and better efficiency. We make three main contributions. First, we construct two domain-specific long-context datasets designed to evaluate realistic workloads, focusing on narrow-domain fine-tuning scenarios. Second, we propose a comprehensive training recipe for ARMT-based context extension, combining continued pre-training, synthetic long-context data generation, curriculum learning, and selective integration of associative memory into chosen model layers. Third, we present an extensive experimental study demonstrating that ARMT-augmented models: (i) process inputs well beyond their original context limits without degrading performance relative to in-limit baselines; (ii) generalize more effectively to out-of-distribution context lengths; and (iii) need 30% fewer FLOPs while preserving baseline performance within the original context window.

Reasoning is a core capability of large language models (LLMs), yet how multi-step reasoning is learned and executed remains unclear. We study this question in a controlled cellular-automata (1dCA) framework that excludes memorization by using disjoint training and test rules. Given a short state sequence, the model is required to infer the hidden local rule and then chain it to predict multiple future steps. Our evaluation shows that LLMs largely fail to reliably solve a natural-language proxy of the proposed task. We find that most neural architectures trained from scratch can learn rule inference and achieve high next-step accuracy, but performance drops sharply as the required number of intermediate reasoning steps increases. Experiments show that increasing model depth is crucial, and extending effective depth via recurrence, memory, or test-time compute improves results but remains bounded. Code is available on github: https://github.com/RodkinIvan/associative-recurrent-memory-transformer/tree/ACT.