Retrieval-augmented generation (RAG) enhances large language models (LLMs) by retrieving external documents. As an emerging form of RAG, parametric retrieval-augmented generation (PRAG) encodes documents as model parameters (i.e., LoRA modules) and injects these representations into the model during inference, enabling interaction between the LLM and documents at parametric level. Compared with directly placing documents in the input context, PRAG is more efficient and has the potential to offer deeper model-document interaction. Despite its growing attention, the mechanism underlying parametric injection remains poorly understood. In this work, we present a systematic study of PRAG to clarify the role of parametric injection, showing that parameterized documents capture only partial semantic information of documents, and relying on them alone yields inferior performance compared to interaction at text level. However, these parametric representations encode high-level document information that can enhance the model's understanding of documents within the input context. When combined parameterized documents with textual documents, the model can leverage relevant information more effectively and become more robust to noisy inputs, achieving better performance than either source alone. We recommend jointly using parameterized and textual documents and advocate for increasing the information content of parametric representations to advance PRAG.
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