Why LLMs Hallucinate on Structured Knowledge: A Mechanistic Analysis of Reasoning over Linearized Representations

In many reasoning tasks, large language models (LLMs) rely on structured external knowledge, such as graphs and tables, which is typically linearized into sequential token representations. However, even when sufficient knowledge is available, LLMs can still produce hallucinated outputs, and the underlying mechanisms behind such failures remain poorly understood. We investigate these mechanisms and find that hallucinations arise from systematic internal dynamics rather than random noise. First, attention disproportionately concentrates toward shortcut-like structural cues rather than distributing across the full context. Second, feed-forward representations fail to ground the provided knowledge, causing the model to revert to parametric memory. Moreover, our results indicate that hallucination is consistently associated with failures in semantic grounding within feed-forward layers, while attention allocation exhibits greater task-dependent variability. Finally, we show that these mechanistic patterns generalize beyond single-hop graphs to multi-hop and tabular settings, enabling effective hallucination detection across structured knowledge formats.

Detecting Hallucinations in Graph Retrieval-Augmented Generation via Attention Patterns and Semantic Alignment

Graph-based Retrieval-Augmented Generation (GraphRAG) enhances Large Language Models (LLMs) by incorporating external knowledge from linearized subgraphs retrieved from knowledge graphs. However, LLMs struggle to interpret the relational and topological information in these inputs, resulting in hallucinations that are inconsistent with the retrieved knowledge. To analyze how LLMs attend to and retain structured knowledge during generation, we propose two lightweight interpretability metrics: Path Reliance Degree (PRD), which measures over-reliance on shortest-path triples, and Semantic Alignment Score (SAS), which assesses how well the model's internal representations align with the retrieved knowledge. Through empirical analysis on a knowledge-based QA task, we identify failure patterns associated with over-reliance on salient paths and weak semantic grounding, as indicated by high PRD and low SAS scores. We further develop a lightweight post-hoc hallucination detector, Graph Grounding and Alignment (GGA), which outperforms strong semantic and confidence-based baselines across AUC and F1. By grounding hallucination analysis in mechanistic interpretability, our work offers insights into how structural limitations in LLMs contribute to hallucinations, informing the design of more reliable GraphRAG systems in the future.