Unified Multimodal Models (UMMs) achieve remarkable success on diverse multimodal understanding and generation tasks, yet they still struggle to effectively leverage language-based chain-of-thought reasoning for image generation. As a result, existing reasoning-augmented UMMs often fail to inherit the test-time scaling and fine-grained controllability observed in large language models. We attribute this failure to a fundamental modality mismatch: reasoning is performed in a discrete token space, whereas image generation operates in a continuous space. To bridge this gap, we introduce a Latent Reasoning framework in Continuous space (LARC), which alleviates the token-level bottleneck by reasoning over continuous hidden states. Specifically, the training framework consists of two stages: (i) curriculum supervised fine-tuning (SFT), and (ii) information-gain reinforcement learning (RL). First, the curriculum SFT stage gradually converts token-level reasoning into latent reasoning. Subsequently, the information-gain RL stage self-evolves latent reasoning without ground truth supervision. Experiments across diverse text-to-image generation benchmarks show that LARC consistently improves generation quality, prompt following, and compositional fidelity. Notably, LARC achieves state-of-the-art performance on GenEval with a 7%p gain over BAGEL and demonstrates clear test-time scaling behavior, outperforming token-based generation under both parallel and sequential test-time scaling strategies.
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