Large language models (LLMs) augmented with retrieval systems have demonstrated significant potential in handling knowledge-intensive tasks. However, these models often struggle with unfaithfulness issues, generating outputs that either ignore the retrieved context or inconsistently blend it with the LLM’s parametric knowledge. This issue is particularly severe in cases of knowledge conflict, where the retrieved context conflicts with the model’s parametric knowledge. While existing faithful RAG approaches enforce strict context adherence through well-designed prompts or modified decoding strategies, our analysis reveals a critical limitation: they achieve faithfulness by forcibly suppressing the model’s parametric knowledge, which undermines the model’s internal knowledge structure and increases the risk of misinterpreting the context. To this end, this paper proposes FaithfulRAG, a novel framework that resolves knowledge conflicts by explicitly modeling discrepancies between the model’s parametric knowledge and retrieved context. Specifically, FaithfulRAG identifies conflicting knowledge at the fact level and designs a self-thinking process, allowing LLMs to reason about and integrate conflicting facts before generating responses. Extensive experiments demonstrate that our method outperforms state-of-the-art methods. The code is available at https://github.com/DeepLearnXMU/Faithful-RAG.

World models achieve remarkable success in predicting future states and planning in complex environments and Large Language Models (LLMs) serve as promising foundation to build general world models. However, their performances are usually constrained by the limited external knowledge to specific environments. Existing research attempts to enhance LLM-based world models through prompting or fine-tuning approaches, which are either requiring human knowledge or computationally extensive. Therefore, we introduce Retrieval-Augmented World Models (RAWM), a novel framework that leverages retrieval-augmented generation to efficiently integrate the external knowledge to LLM-based world models. Our main contributions are threefold: (i) We introduce a memory system and design an embedding model to retrieve relevant experiences as the in-context examples to improve the world model’s predictive accuracy. (ii) We develop a reinforcement learning (RL) training pipeline that fine-tunes a small MLP head on the pre-trained embedding model using Proximal Policy Optimization (PPO), further enhancing prediction performance. (iii) We conduct extensive experiments across three diverse environments, i.e., Game24, BlocksWorld, and BabyAI, demonstrating that RAWM consistently outperforms baseline models and exhibits strong generalizability. By leveraging the retrieval-augmented generation and the efficient RL training pipeline, RAWM dynamically utilizes relevant historical experiences and equips LLMs with environment-specific external knowledge without retraining, enabling more accurate and generalizable predictions.