FrugalRAG

A Retrieval-Augmented Generation approach for efficient multi-hop question answering

Paper: FrugalRAG: Learning to retrieve and reason for multi-hop QA

Overview

Reinforcement learning (RL) based on the final answer’s reward has driven recent progress in small language models (SLMs) on reasoning-heavy tasks such as math and code. However, applying the same techniques to retrieval-augmented generation (RAG) benchmarks like multi-hop QA has yielded limited gains—often trailing supervised or prompting-only baselines. Instead, we argue that a viable path for RL in multi-hop QA is to use test-time scaling judiciously, for optimizing both the final answer accuracy and the efficiency in reaching that answer. We propose FrugalRAG, a two-stage finetuning framework that adaptively reduces the number of retrieval steps based on a question’s difficulty. First, we train an SLM with supervised finetuning on a full-exploration policy that generates broad sub-queries. Then, we apply RL to adaptively prune search depth based on question difficulty, directly rewarding policies that balance correctness with frugality. Unlike prior approaches requiring 100× more data, our method achieves competitive performance with only 1,000 examples. On HotPotQA and other multi-hop QA benchmarks, FrugalRAG attains state-of-the-art efficiency–accuracy tradeoffs, cutting retrieval cost nearly in half. Moreover, on the challenging BrowseCompPlus benchmark, it generalizes zero-shot and surpasses SLM-based and other baselines. These results demonstrate the use of RL—not to increase reasoning steps but to optimize them—as an effective solution for scalable, efficient RAG.

Installation

Prerequisites

• Python 3.10+
• CUDA-compatible GPU
• 16GB+ GPU memory (recommended)

Environment Setup

We recommend using Conda for environment management:

git clone https://github.com/microsoft/FrugalRAG.git
cd FrugalRAG
conda env create -n frag --file environment.yaml
conda activate frag
pip install vllm==0.8.3 --no-deps

See dataset setup and training guide before evaluation.

Quick Start

1. Start Language Model Server

python -m vllm.entrypoints.openai.api_server --model Qwen/Qwen2.5-7B-Instruct --gpu-memory-utilization 0.70 --tensor-parallel-size 1 --port 7501

2. Start Retrieval Backend

Option A: ColBERT (Abstracts)

CUDA_VISIBLE_DEVICES=1 PORT=8000 python -m src.search.serve_colbert.py --index_root ../data/index/ --index wiki17.nbits.local --colbert_path ../data/colbertv2.0 --collection_path ../data/wiki.abstracts.2017/collection.tsv

Option B: ColBERT (Abstracts and Body)

CUDA_VISIBLE_DEVICES=1 PORT=8000 python -m src.search.serve_colbert.py --index_root ../data/index/ --index wiki18.nbits.local --colbert_path ../data/colbertv2.0 --collection_path ../data/wiki.2018/collection.tsv

Option C: E5

# convert faiss flat index to pytorch shards for fast execution
python src/search/shard_embeddings.py

# start server
INDEX_DIR=../data/e5-base-v2/pytorch-shards/ E5_MODEL_NAME_OR_PATH="intfloat/e5-base-v2" TOP_K=5 uvicorn src.search.start_e5_server_main:app --port 8001 

Evaluation

Running Evaluation

Ensure all required services are running before evaluation.

Run evaluation:

python -m src.evaluation.eval_mp --model_name_or_path [MODEL_PATH] --output_path [OUTPUT_PATH] --prompt_path [PROMPT_PATH] --answer_model [BASE_MODEL_NAME] --port 7501 7502 --search_port 8000 --dataset_name [DATASET_NAME] --input_file [DEV_FILE_PATH]

# extract the final answer with CoT prompt
python -m src.evaluation.eval_mp --model_name_or_path [MODEL_PATH] --output_path [OUTPUT_PATH] --prompt_path [PROMPT_PATH] --answer_model [BASE_MODEL_NAME] --port 7501 7502 --search_port 8000 --dataset_name [DATASET_NAME] --input_file [DEV_FILE_PATH] --answer_only True

Run MBE (ensure you set the path in the grade_all.py script)

python -m src.evaluation.grade_all

Available Evaluation Metrics

The evaluation framework automatically computes:

• Exact Match (EM): Binary accuracy for correct answers
• Match: Checks if gold answer is present in the generated answer
• F1 Score: Token-level overlap between predicted and gold answers
• Cost Efficiency: Retrieval operations per query
• Recall/Support F1: Retrieval peformance
• MBE: LLM Judge Score

Configuration

Configuration Files

Configuration files are organized in the configs/ directory:

configs/
├── create_data/          # Data generation configs
│   └── colbert/
│       ├── hotpot_qwen7b_finish.json
│       └── hotpot_qwen7b_nofinish.json
├── sft/                  # Supervised fine-tuning configs
│   └── colbert/
│       ├── hotpot_qwen7b_m5_0.90.json
│       └── hotpot_qwen7b_m5_nofinish.json
├── grpo/                 # GRPO reinforcement learning configs
│   └── colbert/
│       └── hotpot_qwen7b_m5_0.90.json
└── default_config.yaml   # Accelerate configuration

Please set the correct paths, port numbers to ensure the models run smoothly.

Key Configuration Parameters

Parameter	Description	Example
model_name_or_path	Base model for training	"Qwen/Qwen2.5-7B-Instruct"
search_port	Retrieval server port	8000
port	Model server ports (reasoner, answer generator)	[7501, 7502]
max_iters	Maximum reasoning iterations	5
ndocs	Documents retrieved per iteration	3 or 5
dataset_name	Target dataset (hotpot, 2wiki, musique)	"hotpot"

---

Troubleshooting

Common Issues & Solutions

Import Errors in ColBERTv2

Issue: ImportError: cannot import name 'AdamW' from 'transformers'

Solution: Comment out the import in the relevant files. We use a newer transformers version.

Device Mismatch During SFT

Issue: RuntimeError: Expected all tensors to be on the same device

Solution: In the transformers package file loss_utils.py, line 38, use:

if reduction == "sum":
    loss = loss / num_items_in_batch.to(loss.device)
return loss

NCCL Error

Exception: Call to collective_rpc method failed: Weight update group already initialized. Call close_communicator first.                                                                                                                                              

Just rerun trl vllm-serve, sometimes it does not call close_communicator on its own.

Performance Optimization

• Memory Usage: Adjust --gpu-memory-utilization based on your GPU memory
• Training Speed: Use DeepSpeed Zero3 for large model training
• Inference Speed: Use --tensor-parallel-size for multi-GPU inference

Citation

If you use this repository, please cite our paper:

@misc{java2025frugalraglearningretrievereason,
      title={FrugalRAG: Learning to retrieve and reason for multi-hop QA}, 
      author={Abhinav Java and Srivathsan Koundinyan and Nagarajan Natarajan and Amit Sharma},
      year={2025},
      eprint={2507.07634},
      archivePrefix={arXiv},
      primaryClass={cs.CL},
      url={https://arxiv.org/abs/2507.07634}, 
}

Acknowledgments

• ColBERT for the efficient retrieval framework
• DSPy for the programming framework for language models
• vLLM for high-performance LLM inference