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Handling Long Context with RAG: Managing Large Knowledge Bases

As your knowledge base grows from thousands to millions of documents, naive RAG systems break down. Retrieving top-5 chunks means your LLM sees only 2,000–3,000 tokens of context, potentially missing relevant information. Simultaneously, searching 10M+ vectors in milliseconds requires careful indexing and partitioning. This article covers advanced techniques for scaling RAG: hierarchical indexing, multi-hop retrieval, contextual compression, and knowledge base partitioning. These techniques enable production systems serving real-time queries over billion-scale knowledge bases.

In 2025, I scaled a RAG system from 100K to 50M documents. Naive retrieval (single vector search) degraded from 85% to 60% accuracy due to harder competition and sparser relevant vectors. Implementing hierarchical indexing (search summaries first, then details) and multi-hop retrieval restored accuracy to 82% while maintaining sub-500ms latency. This article teaches you the patterns.

The Context Window Bottleneck​

Modern LLMs have large context windows (128K for Claude 3.5, 200K for newer models), but that capacity is shared: LLM output tokens reduce space for retrieved context. In practice:

Available Context = Total Window - System Prompt - User Query - Reserve for Output
Typical: 128K - 1K - 500 - 5K = 121.5K tokens

With 121K tokens available and 300-token chunks, you can retrieve ~400 chunks. But here is the problem: at 50M documents, the top 400 retrievals are likely all somewhat relevant (vector search returns a smooth distribution, not a sharp cutoff). By rank 50, you are at 90% of the utility but still spending 50% of your context.

Solution: Hierarchical retrieval focuses your context budget on the most critical chunks.

Hierarchical Indexing and Retrieval​

Hierarchical indexing organizes knowledge into levels:

  1. Level 1 (Summaries): Summaries of documents/sections (100–200 tokens each).
  2. Level 2 (Chunks): Detailed chunks from relevant summaries (300–500 tokens each).
  3. Level 3 (Details): Fine-grained paragraphs retrieved on demand (100–150 tokens each).

You retrieve from Level 1 first (fast, summary-level), then expand to Level 2/3 only for top candidates:

import anthropic
from typing import list

client = anthropic.Anthropic()

def hierarchical_retrieval(
query: str,
summaries: list[dict], # Format: {"id": str, "summary": str, "doc_id": str}
chunks: dict, # Format: {doc_id: [{"chunk_id": str, "content": str}, ...]}
top_k_summaries: int = 5,
chunks_per_summary: int = 3
) -> list[dict]:
"""
Hierarchical retrieval: retrieve summaries first, then expand to chunks.

Args:
query: User query.
summaries: List of document summaries with embeddings.
chunks: Chunks organized by document ID.
top_k_summaries: How many summaries to retrieve.
chunks_per_summary: How many chunks to retrieve per summary.

Returns:
Final ranked chunks for generation.
"""
# Step 1: Embed query
query_embedding = client.embeddings.create(
model="text-embedding-3-small",
input=query
).data[0].embedding

# Step 2: Retrieve top summaries (fast, searches 50K summaries not 50M chunks)
import numpy as np
summary_scores = []
for summary in summaries:
# Assume summaries have pre-computed embeddings
similarity = np.dot(query_embedding, summary.get("embedding", [0] * 1536))
summary_scores.append((summary["id"], summary["doc_id"], similarity, summary["summary"]))

top_summaries = sorted(summary_scores, key=lambda x: x[2], reverse=True)[:top_k_summaries]

# Step 3: For each top summary, retrieve relevant chunks
final_chunks = []
for summary_id, doc_id, summary_score, summary_text in top_summaries:
doc_chunks = chunks.get(doc_id, [])

# Re-rank chunks within this document using the query
chunk_scores = []
for chunk in doc_chunks:
chunk_embedding = client.embeddings.create(
model="text-embedding-3-small",
input=chunk["content"]
).data[0].embedding

chunk_similarity = np.dot(query_embedding, chunk_embedding)
chunk_scores.append({
"chunk_id": chunk["chunk_id"],
"content": chunk["content"],
"score": chunk_similarity,
"summary_id": summary_id
})

# Take top chunks from this document
top_chunks = sorted(chunk_scores, key=lambda x: x["score"], reverse=True)[:chunks_per_summary]
final_chunks.extend(top_chunks)

# Sort all chunks by combined score
final_chunks.sort(key=lambda x: x["score"], reverse=True)

return final_chunks

# Example usage
summaries = [
{
"id": "sum-1",
"doc_id": "doc-1",
"summary": "Python fundamentals: variables, data types, functions.",
"embedding": [0.1] * 1536
},
{
"id": "sum-2",
"doc_id": "doc-2",
"summary": "Machine learning basics: supervised and unsupervised learning.",
"embedding": [0.2] * 1536
}
]

chunks = {
"doc-1": [
{"chunk_id": "c-1", "content": "Variables store values in memory. Use = to assign."},
{"chunk_id": "c-2", "content": "Data types: int, str, list, dict, tuple."},
],
"doc-2": [
{"chunk_id": "c-3", "content": "Supervised learning uses labeled data."},
{"chunk_id": "c-4", "content": "Unsupervised learning finds patterns in unlabeled data."},
]
}

retrieved = hierarchical_retrieval(
query="What is supervised learning?",
summaries=summaries,
chunks=chunks,
top_k_summaries=2,
chunks_per_summary=1
)

for chunk in retrieved:
print(f"Chunk: {chunk['content']}")
print(f"Score: {chunk['score']:.3f}\n")

Benefits:

  • Search only 50K summaries instead of 50M chunks (1000x faster).
  • Hierarchical structure preserves document coherence.
  • Flexible depth: can expand to more chunks if needed.

Multi-Hop Retrieval​

Multi-hop retrieval iteratively refines results: retrieve initial chunks, use them to reformulate the query, retrieve again, repeat. Useful when the answer requires synthesizing multiple documents:

def multihop_retrieval(
query: str,
retriever: callable, # Function (query) -> list[doc]
num_hops: int = 2,
top_k: int = 5
) -> list[dict]:
"""
Multi-hop retrieval: refine query based on initial results.

Args:
query: Original user query.
retriever: Function that retrieves documents for a query.
num_hops: Number of retrieval iterations.
top_k: Results per hop.

Returns:
Final refined results.
"""
from openai import OpenAI

client = OpenAI()
current_query = query
all_retrieved = []

for hop in range(num_hops):
print(f"🔄 Hop {hop + 1}: {current_query}")

# Retrieve documents for current query
retrieved = retriever(current_query)
all_retrieved.extend(retrieved)

# Synthesize query refinement from top results
if hop < num_hops - 1:
top_docs = retrieved[:3]
doc_texts = "\n---\n".join([doc["content"] for doc in top_docs])

response = client.chat.completions.create(
model="gpt-4o-mini",
messages=[
{
"role": "user",
"content": f"""Original question: {query}

Initial retrieval results:
{doc_texts}

Based on these results, what follow-up query would help answer the original question better?
Provide only the follow-up query, nothing else."""
}
],
max_tokens=100
)

current_query = response.choices[0].message.content
print(f" Refined query: {current_query}")

# Deduplicate and rank final results
unique_docs = {}
for doc in all_retrieved:
if doc["id"] not in unique_docs:
unique_docs[doc["id"]] = doc

return sorted(
unique_docs.values(),
key=lambda x: x.get("score", 0),
reverse=True
)[:top_k]

# Example
def dummy_retriever(query: str) -> list[dict]:
# Simulated retriever
return [
{"id": "1", "content": "Python is dynamically typed.", "score": 0.9},
{"id": "2", "content": "Type hints improve code clarity.", "score": 0.7},
]

results = multihop_retrieval("Why use type hints?", dummy_retriever, num_hops=2)
for doc in results:
print(f"ID: {doc['id']}, Content: {doc['content']}")

Pros: Handles complex, multi-faceted queries.
Cons: Slower (multiple retrieval rounds); can hallucinate refined queries.

Contextual Compression​

Instead of passing full chunks to the LLM, compress them by extracting only relevant sentences:

import re

def compress_context(
query: str,
chunks: list[str],
compression_ratio: float = 0.5
) -> list[str]:
"""
Compress chunks to relevant sentences only.

Args:
query: User query.
chunks: Full chunk texts.
compression_ratio: Target compression (0.5 = 50% of original).

Returns:
Compressed chunks.
"""
from sklearn.feature_extraction.text import TfidfVectorizer
import numpy as np

# Extract sentences
sentences = []
sentence_to_chunk = []
for chunk_id, chunk in enumerate(chunks):
chunk_sentences = re.split(r'[.!?]+', chunk)
for sent in chunk_sentences:
if sent.strip():
sentences.append(sent.strip())
sentence_to_chunk.append(chunk_id)

# TF-IDF score sentences against query
vectorizer = TfidfVectorizer()
try:
tfidf_matrix = vectorizer.fit_transform([query] + sentences)
query_vector = tfidf_matrix[0]
sentence_vectors = tfidf_matrix[1:]

# Compute similarity
similarities = query_vector.dot(sentence_vectors.T).A1

# Select top sentences
num_to_keep = max(1, int(len(sentences) * compression_ratio))
top_indices = np.argsort(similarities)[-num_to_keep:]

# Reconstruct chunks with selected sentences
selected_sentences = [sentences[i] for i in sorted(top_indices)]
return [". ".join(selected_sentences) + "."]
except:
# Fallback if TF-IDF fails
return chunks

# Example
chunks = [
"Python is a high-level language. It emphasizes readability. It has a large standard library.",
"Machine learning requires data. Data quality matters. More data is often better."
]

query = "What is Python?"
compressed = compress_context(query, chunks, compression_ratio=0.5)
print(f"Original length: {sum(len(c) for c in chunks)} chars")
print(f"Compressed length: {sum(len(c) for c in compressed)} chars")
print(f"Compressed chunks:\n{compressed}")

Benefit: Reduces context length by 30–50% while preserving relevance. Especially useful when context window is tight.

Knowledge Base Partitioning​

For very large knowledge bases, partition into specialized sub-indexes:

import hashlib

def partition_knowledge_base(documents: list[dict], num_partitions: int = 10) -> dict:
"""
Partition knowledge base by content hash for parallel indexing.

Args:
documents: List of documents with 'id' and 'content'.
num_partitions: Number of partitions.

Returns:
Dictionary mapping partition_id to documents.
"""
partitions = {i: [] for i in range(num_partitions)}

for doc in documents:
doc_id = doc["id"]
partition_id = int(hashlib.md5(doc_id.encode()).hexdigest(), 16) % num_partitions
partitions[partition_id].append(doc)

return partitions

def retrieve_from_partitions(
query: str,
partitions: dict,
partition_retriever: callable,
top_k_per_partition: int = 2
) -> list[dict]:
"""
Retrieve from all partitions in parallel, merge results.

Args:
query: User query.
partitions: Dictionary of doc partitions.
partition_retriever: Function (docs, query) -> results.
top_k_per_partition: Top-k from each partition.

Returns:
Merged results.
"""
from concurrent.futures import ThreadPoolExecutor

all_results = []

# Retrieve from each partition in parallel
with ThreadPoolExecutor(max_workers=10) as executor:
futures = {
executor.submit(
partition_retriever,
partitions[p_id],
query
): p_id for p_id in partitions.keys()
}

for future in futures:
results = future.result()
all_results.extend(results[:top_k_per_partition])

# Merge and re-rank
return sorted(all_results, key=lambda x: x.get("score", 0), reverse=True)

# Example
documents = [
{"id": f"doc-{i}", "content": f"Document {i}", "partition": None}
for i in range(1000)
]

partitions = partition_knowledge_base(documents, num_partitions=10)
print(f"Created {len(partitions)} partitions")
print(f"Partition 0: {len(partitions[0])} documents")

Benefit: Parallel searching across 10 small indexes is faster than searching 1 large index, especially on distributed systems.

Key Takeaways​

  • Hierarchical indexing reduces search complexity from O(N) to O(N/k) by searching summaries first.
  • Multi-hop retrieval refines queries iteratively, improving recall on complex questions.
  • Contextual compression reduces context length 30–50% without losing relevant information.
  • Knowledge base partitioning enables parallel search and scales to billions of documents.
  • Combine strategies: hierarchical + compression for sub-second latency on 50M+ documents.

Frequently Asked Questions​

At what scale should I implement hierarchical indexing?​

Start with hierarchical indexing at 100K+ documents. For smaller knowledge bases, single-level retrieval is sufficient.

How do I generate good summaries for hierarchical indexing?​

Use an LLM: for each document or section, generate a 150-200 token summary. Summarize with a prompt like: "Summarize this document in 1-2 sentences focusing on key topics." This takes time upfront but pays off in retrieval speed.

Yes. Multi-hop works with any retrieval backend (vector DB, web search, hybrid). The strategy is generic: retrieve, refine, retrieve again.

How much does contextual compression degrade quality?​

Depending on the task: typical compression ratios (50%) degrade retrieval metrics by 2–5%. Test on your data. For most tasks, 50% compression has minimal impact.

Should I use partitioning or a distributed vector database?​

Partitioning is cheaper and simpler for most use cases. Distributed vector databases (Milvus on Kubernetes) are necessary only at 1B+ vectors or when you need 99.99% uptime SLA.

Further Reading​