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Why is chunking such a big deal in RAG, and what actual...
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See plansChunking sets a hard ceiling on retrieval quality, because whatever unit of text you split a document into is the largest unit that can ever be retrieved as a coherent piece — no reranker or clever prompt downstream can undo a bad chunk boundary. Chunks that are too large mix several topics into one embedding, which dilutes what that embedding actually represents and, once retrieved, wastes context-window tokens on irrelevant surrounding text. Chunks that are too small do the opposite kind of damage: an answer that spans two sentences might get split so that only half of it is ever retrieved, and a lone sentence stripped of its surrounding context can become meaningless on its own.
There’s no universal correct chunk size — a five-page policy document chunked as one giant block buries the answer to a specific question in irrelevant text, while chunking every sentence separately drops the qualifying clause that made the sentence answer the question correctly. A paragraph-sized chunk, roughly 256-1024 tokens with some overlap, tends to land in the sweet spot for most prose documents, but the only reliable way to pick a size is to test a few candidates against actual retrieval quality on your own content rather than trusting a default.