  Theory of Mind (ToM) is the ability to reason about one's own and others'
mental states. ToM plays a critical role in the development of intelligence,
language understanding, and cognitive processes. While previous work has
primarily focused on first and second-order ToM, we explore higher-order ToM,
which involves recursive reasoning on others' beliefs. We introduce HI-TOM, a
Higher Order Theory of Mind benchmark. Our experimental evaluation using
various Large Language Models (LLMs) indicates a decline in performance on
higher-order ToM tasks, demonstrating the limitations of current LLMs. We
conduct a thorough analysis of different failure cases of LLMs, and share our
thoughts on the implications of our findings on the future of NLP.
