RAG from Scratch [Part 3]: Chunking — The Decision That Makes or Breaks Your Retrieval
Last Updated on July 6, 2026 by Editorial Team
Author(s): Sumit Vedpathak
Originally published on Towards AI.
TL;DR
Imagine you’re studying for an exam. You have a 400-page textbook.
![RAG from Scratch [Part 3]: Chunking — The Decision That Makes or Breaks Your Retrieval RAG from Scratch [Part 3]: Chunking — The Decision That Makes or Breaks Your Retrieval](https://miro.medium.com/v2/resize:fit:700/1*FsV0nwaQGlC-Ra14EgqdCw.png)
This post explains why chunking is essential for RAG—because embedding models and LLMs have size limits and retrieval quality depends on how well chunks isolate the right context. It introduces a mental model where each chunk is a retrieval unit represented by an embedding, and emphasizes the need for “one coherent idea per chunk” with sufficient context. The article then walks through multiple chunking strategies (fixed-size character splitting, recursive splitting using separators, token-based splitting, structure-aware chunking by headers/sections for Markdown/HTML/PDF/DOCX, code splitting for language-aware function/block boundaries, sentence splitting using NLP tools, and semantic chunking that cuts based on meaning changes), including tradeoffs, when to use each approach, and practical tips like overlap. It also covers advanced patterns like parent-child chunking to combine precise retrieval with richer context, and provides guidance for production-ready chunking (handling tables separately, avoiding stale chunks with re-indexing triggers, attaching metadata for traceability, addressing multilingual sentence boundaries, controlling cost/latency at scale, regression-testing chunking changes with an eval set, and versioning chunking configuration alongside embeddings). Finally, it situates chunking in the broader RAG series roadmap, noting that later parts will focus on embeddings and other pipeline components.
Read the full blog for free on Medium.
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