Working Memory: Context Windows, Scratchpads, and State

Agentic AI 19 min min read Updated: Feb 26, 2026 Beginner
Working Memory: Context Windows, Scratchpads, and State
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Working Memory: Context Windows, Scratchpads, and State

Context windows are not memory

LLMs have a context window, not memory. It’s temporary and expensive. Working memory is how you manage that window: what to include, what to omit, and what to summarize.

Scratchpads: internal state that keeps the agent consistent

A scratchpad is a structured internal note like:

  • Current goal
  • Known constraints
  • What has been done
  • What’s next

This reduces drift because the agent doesn’t “forget” the plan halfway.

Practical token budgeting

In production, you must treat tokens like money:

  • Summarize tool outputs
  • Keep only the last N turns verbatim
  • Promote stable facts to long-term memory

State machines beat free-form memory

For workflows (onboarding, ticketing, checkout), a simple state machine is often better than dumping conversation context into the LLM. Use the LLM for reasoning, not for tracking state.

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