Counterspeech, defined as a response to mitigate online hate speech, is increasingly used as a non-censorial solution. The effectiveness of addressing hate speech involves dispelling the stereotypes, prejudices, and biases often subtly implied in brief, single-sentence statements or abuses. These expressions challenge language models, especially in seq2seq tasks, as model performance typically excels with longer contexts. Our study introduces CoARL, a novel framework enhancing counterspeech generation by modeling the pragmatic implications underlying social biases in hateful statements. The first two phases of CoARL involve sequential multi-instruction tuning, teaching the model to understand intents, reactions, and harms of offensive statements, and then learning task-specific low-rank adapter weights for generating intent-conditioned counterspeech. The final phase uses reinforcement learning to fine-tune outputs for effectiveness and nontoxicity. CoARL outperforms existing benchmarks in intent-conditioned counterspeech generation, showing an average improvement of ∼3 points in intent-conformity and ∼4 points in argument-quality metrics. Extensive human evaluation supports CoARL’s efficacy in generating superior and more context-appropriate responses compared to existing systems, including prominent LLMs like ChatGPT.