The Impact of Chunk Size & Overlap on RAG Accuracy
In Retrieval-Augmented Generation (RAG), semantic chunking is the single most important factor determining vector search recall. If chunks are too small (e.g. 50 tokens), embeddings lose semantic context and meaning. If chunks are too large (e.g. 2,000 tokens), specific facts get diluted across unrelated paragraphs, causing retrieval ranking algorithms to miss the target information.
Why Sliding Window Overlap is Critical
Without overlap, a query matching a concept spanning the boundary between two adjacent chunks will fail because neither chunk contains the complete thought. Setting a 10% to 20% chunk overlap ensures continuous semantic continuity across chunk boundaries.