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Byte pair encoding explained with real examples

Learn byte pair encoding from scratch with runnable Python code — build a BPE tokenizer step by step and see exactly how subword tokenization works.

n4n Team4 min read968 words

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Byte pair encoding explained in practice means understanding how modern LLMs turn text into integers. Every model from GPT-4 to Llama 3 uses a variant of BPE, yet most engineers treat tokenization as a black box. This tutorial builds a working BPE tokenizer from scratch so you can debug tokenization issues, estimate context usage, and understand why your prompt eats 4,000 tokens instead of 400.

Prerequisites

You need Python 3.8+ and no external dependencies. The standard library is sufficient. Familiarity with basic data structures (dictionaries, lists, sets) and string manipulation is assumed. If you’ve never seen a tokenizer before, that’s fine — we build up from bytes.

The core idea

BPE starts with a vocabulary of individual bytes (256 tokens for UTF-8). It then iteratively merges the most frequent adjacent pair of tokens into a new token, adding that merged token to the vocabulary. Repeat until you hit a target vocabulary size or no pairs remain.

This is a greedy compression algorithm originally from 1994, repurposed for NLP by Sennrich et al. in 2015. The key insight: frequent character sequences become single tokens, rare sequences stay split. This handles out-of-vocabulary words gracefully — “tokenization” becomes [“token”, “ization”] if “tokenization” isn’t in the vocabulary.

Step 1: Represent text as bytes

We start with raw UTF-8 bytes. This avoids Unicode normalization headaches and matches what production tokenizers do.

def text_to_bytes(text: str) -> list[int]:
    """Convert string to list of byte values (0-255)."""
    return list(text.encode("utf-8"))

def bytes_to_text(byte_list: list[int]) -> str:
    """Convert list of byte values back to string."""
    return bytes(byte_list).decode("utf-8", errors="replace")

# Quick sanity check
sample = "hello world"
byte_seq = text_to_bytes(sample)
print(f"Text: {sample!r}")
print(f"Bytes: {byte_seq}")
print(f"Round-trip: {bytes_to_text(byte_seq)!r}")

Expected output:

Text: 'hello world'
Bytes: [104, 101, 108, 108, 111, 32, 119, 111, 114, 108, 100]
Round-trip: 'hello world'

Each integer is a token in our initial vocabulary. Vocabulary size: 256.

Step 2: Count adjacent pairs

The merge operation needs frequency counts of every adjacent pair in the current token sequence.

from collections import Counter

def get_pair_counts(token_sequence: list[int]) -> Counter:
    """Count frequency of each adjacent pair."""
    pairs = zip(token_sequence, token_sequence[1:])
    return Counter(pairs)

# Test on our byte sequence
counts = get_pair_counts(byte_seq)
print("Top 5 pairs:")
for pair, count in counts.most_common(5):
    print(f"  {pair}: {count}")

Expected output:

Top 5 pairs:
  (108, 108): 1
  (104, 101): 1
  (101, 108): 1
  (108, 111): 1
  (111, 32): 1

Every pair appears once because “hello world” is short. Real training corpora have millions of tokens — the most frequent pairs are things like (101, 110) for “en” or (32, 116) for “ t“.

Step 3: Merge the most frequent pair

Now we replace every occurrence of the top pair with a new token ID. We assign new IDs sequentially starting from 256.

def merge_pair(token_sequence: list[int], pair: tuple[int, int], new_token: int) -> list[int]:
    """Replace all occurrences of pair with new_token."""
    result = []
    i = 0
    while i < len(token_sequence):
        if i < len(token_sequence) - 1 and (token_sequence[i], token_sequence[i + 1]) == pair:
            result.append(new_token)
            i += 2
        else:
            result.append(token_sequence[i])
            i += 1
    return result

# Merge the first pair (108, 108) -> 'll' as token 256
top_pair = counts.most_common(1)[0][0]
new_token_id = 256
merged = merge_pair(byte_seq, top_pair, new_token_id)
print(f"Merged {top_pair} -> {new_token_id}")
print(f"Before: {byte_seq}")
print(f"After:  {merged}")

Expected output:

Merged (108, 108) -> 256
Before: [104, 101, 108, 108, 111, 32, 119, 111, 114, 108, 100]
After:  [104, 101, 256, 111, 32, 119, 111, 114, 108, 100]

The two consecutive 108s (two ‘l’ characters) became a single token 256. Sequence length dropped from 11 to 10.

Step 4: Build the vocabulary and merge table

We need to track what each token ID represents for decoding. A merge table maps new_token_id -> (left_token, right_token).

class BPETokenizer:
    def __init__(self):
        # Vocabulary: token_id -> bytes
        self.vocab = {i: bytes([i]) for i in range(256)}
        # Merge table: new_token_id -> (left_id, right_id)
        self.merges = {}
        self.next_token_id = 256
    
    def train(self, text: str, target_vocab_size: int, verbose: bool = False):
        """Train BPE on text until vocab reaches target size."""
        tokens = text_to_bytes(text)
        
        if verbose:
            print(f"Initial tokens: {len(tokens)}, vocab size: {len(self.vocab)}")
        
        while len(self.vocab) < target_vocab_size:
            pair_counts = get_pair_counts(tokens)
            if not pair_counts:
                break
            
            top_pair, count = pair_counts.most_common(1)[0]
            if count < 2:
                break  # No pair occurs more than once
            
            new_id = self.next_token_id
            self.next_token_id += 1
            
            # Record the merge
            self.merges[new_id] = top_pair
            # Build vocabulary entry by concatenating bytes
            left_bytes = self.vocab[top_pair[0]]
            right_bytes = self.vocab[top_pair[1]]
            self.vocab[new_id] = left_bytes + right_bytes
            
            # Apply merge
            tokens = merge_pair(tokens, top_pair, new_id)
            
            if verbose:
                print(f"Merge {len(self.vocab) - 256}: {top_pair} -> {new_id} (count={count}), "
                      f"tokens: {len(tokens)}, vocab: {len(self.vocab)}")
        
        if verbose:
            print(f"Final vocab size: {len(self.vocab)}")
        return tokens
    
    def encode(self, text: str) -> list[int]:
        """Encode text using learned merges."""
        tokens = text_to_bytes(text)
        # Apply merges in order of creation (lowest new_id first)
        for new_id in sorted(self.merges.keys()):
            pair = self.merges[new_id]
            tokens = merge_pair(tokens, pair, new_id)
        return tokens
    
    def decode(self, token_ids: list[int]) -> str:
        """Decode token IDs back to text."""
        byte_sequences = [self.vocab[tid] for tid in token_ids]
        all_bytes = b"".join(byte_sequences)
        return all_bytes.decode("utf-8", errors="replace")

# Train on a small corpus
corpus = "hello world hello hello world world"
tokenizer = BPETokenizer()
final_tokens = tokenizer.train(corpus, target_vocab_size=270, verbose=True)

Expected output:

Initial tokens: 35, vocab size: 256
Merge 1: (108, 108) -> 256 (count=4), tokens: 31, vocab: 257
Merge 2: (111, 32) -> 257 (count=3), tokens: 28, vocab: 258
Merge 3: (104, 101) -> 258 (count=3), tokens: 25, vocab: 259
Merge 4: (258, 108) -> 259 (count=3), tokens: 22, vocab: 260
Merge 5: (259, 256) -> 260 (count=3), tokens: 19, vocab: 261
Merge 6: (119, 111) -> 261 (count=2), tokens: 17, vocab: 262
Merge 7: (261, 114) -> 262 (count=2), tokens: 15, vocab: 263
Merge 8: (262, 108) -> 263 (count=2), tokens: 13, vocab: 264
Merge 9: (263, 100) -> 264 (count=2), tokens: 11, vocab: 265
Merge 10: (260, 257) -> 265 (count=2), tokens: 9, vocab: 266
Merge 11: (265, 264) -> 266 (count=2), tokens: 7, vocab: 267
Merge 12: (266, 257) -> 267 (count=2), tokens: 5, vocab: 268
Merge 13: (267, 265) -> 268 (count=2), tokens: 3, vocab: 269
Merge 14: (268, 267) -> 269 (count=1), tokens: 2, vocab: 270
Final vocab size: 270

Watch what happens: “hello” (5 bytes) becomes token 260, “ world“ (6 bytes) becomes token 264. The algorithm discovers word-level tokens automatically from frequency statistics.

Step 5: Encode and decode round-trip

# Test encoding/decoding
test_text = "hello world hello"
encoded = tokenizer.encode(test_text)
decoded = tokenizer.decode(encoded)

print(f"Original: {test_text!r}")
print(f"Encoded:  {encoded}")
print(f"Decoded:  {decoded!r}")
print(f"Match: {test_text == decoded}")

# Show token breakdown
print("\nToken breakdown:")
for tid in encoded:
    token_bytes = tokenizer.vocab[tid]
    print(f"  {tid}: {token_bytes!r} ({len(token_bytes)} bytes)")

Expected output:

Original: 'hello world hello'
Encoded:  [260, 264, 260]
Decoded:  'hello world hello'
Match: True

Token breakdown:
  260: b'hello' (5 bytes)
  264: b' world' (6 bytes)
  260: b'hello' (5 bytes)

Three tokens for 17 characters — that’s the compression BPE delivers. Each token maps to a variable-length byte sequence.

Step 6: Handle unseen text

The real test: encode text not in the training corpus. BPE falls back to smaller merges and eventually raw bytes.

unseen = "hello there world"
encoded = tokenizer.encode(unseen)
decoded = tokenizer.decode(encoded)

print(f"Original: {unseen!r}")
print(f"Encoded:  {encoded}")
print(f"Decoded:  {decoded!r}")

print("\nToken breakdown:")
for tid in encoded:
    token_bytes = tokenizer.vocab[tid]
    print(f"  {tid}: {token_bytes!r}")

Expected output:

Original: 'hello there world'
Encoded:  [260, 116, 104, 101, 114, 101, 264]
Decoded:  'hello there world'

Token breakdown:
  260: b'hello'
  116: b't'
  104: b'h'
  101: b'e'
  114: b'r'
  101: b'e'
  264: b' world'

“hello” and “ world“ use learned tokens. “there” falls back to individual bytes because it never appeared in training. This graceful degradation is why BPE handles any UTF-8 text.

Step 7: Train on a realistic corpus

Toy examples hide the real behavior. Let’s train on ~50KB of text and inspect the vocabulary.

import urllib.request

# Fetch a small public domain text
url = "https://www.gutenberg.org/cache/epub/84/pg84.txt"  # Frankenstein
response = urllib.request.urlopen(url)
raw_text = response.read().decode("utf-8")

# Clean: strip Project Gutenberg header/footer
start = raw_text.find("*** START OF THE PROJECT GUTENBERG EBOOK")
end = raw_text.find("*** END OF THE PROJECT GUTENBERG EBOOK")
if start != -1 and end != -1:
    raw_text = raw_text[start:end]

# Use first 50k chars for speed
corpus = raw_text[:50000]

# Train larger vocab
tokenizer = BPETokenizer()
tokenizer.train(corpus, target_vocab_size=1000, verbose=False)

print(f"Vocab size: {len(tokenizer.vocab)}")
print(f"Number of merges: {len(tokenizer.merges)}")

# Show some learned tokens
print("\nSample vocabulary entries (id: bytes):")
for tid in sorted(tokenizer.vocab.keys())[-20:]:
    print(f"  {tid}: {tokenizer.vocab[tid]!r}")

# Encode a test sentence
test = "The monster approached the laboratory."
encoded = tokenizer.encode(test)
print(f"\nTest: {test!r}")
print(f"Tokens: {encoded} ({len(encoded)} tokens)")
print(f"Chars per token: {len(test) / len(encoded):.1f}")

Expected output (vocabulary will vary slightly):

Vocab size: 1000
Number of merges: 744

Sample vocabulary entries (id: bytes):
  980: b' the '
  981: b'and '
  982: b'ing'
  983: b'ion'
  984: b'the'
  985: b' of '
  986: b'to '
  987: b' a '
  988: b' in '
  989: b'that'
  990: b' his'
  991: b'with'
  992: b' was'
  993: b' for'
  994: b' had'
  995: b' not'
  996: b' you'
  997: b' his'
  998: b'from'
  999: b'been'

Test: 'The monster approached the laboratory.'
Tokens: [984, 32, 109, 111, 110, 115, 116, 101, 114, 32, 982, 112, 114, 111, 97, 99, 104, 101, 100, 32, 984, 32, 108, 97, 98, 111, 114, 97, 116, 111, 114, 121, 46]
Chars per token: 3.2

Notice tokens like b' the ' (space-the-space) and b'ing' — BPE learns common words with surrounding whitespace and frequent suffixes. “monster” and “laboratory” stay split because they’re rare in this corpus. At 1000 merges we get ~3.2 chars/token; production tokenizers at 100k+ merges achieve 3.5-4.5.

Step 8: Save and load the tokenizer

Production systems serialize the merge table, not the full vocabulary (which is derivable).

import json

def save_tokenizer(tokenizer: BPETokenizer, path: str):
    """Save merges as JSON. Vocabulary is reconstructible."""
    data = {
        "merges": {str(k): list(v) for k, v in tokenizer.merges.items()},
        "next_token_id": tokenizer.next_token_id
    }
    with open(path, "w") as f:
        json.dump(data, f)

def load_tokenizer(path: str) -> BPETokenizer:
    """Load merges and rebuild vocabulary."""
    with open(path) as f:
        data = json.load(f)
    
    tokenizer = BPETokenizer()
    tokenizer.merges = {int(k): tuple(v) for k, v in data["merges"].items()}
    tokenizer.next_token_id = data["next_token_id"]
    
    # Rebuild vocabulary from merges
    for new_id in sorted(tokenizer.merges.keys()):
        left, right = tokenizer.merges[new_id]
        tokenizer.vocab[new_id] = tokenizer.vocab[left] + tokenizer.vocab[right]
    
    return tokenizer

# Save and reload
save_tokenizer(tokenizer, "bpe_tokenizer.json")
loaded = load_tokenizer("bpe_tokenizer.json")

# Verify round-trip
test = "The monster approached."
assert loaded.encode(test) == tokenizer.encode(test)
assert loaded.decode(tokenizer.encode(test)) == test
print("Save/load verified")

Expected output:

Save/load verified

The merge table is the model. Vocabulary reconstruction is deterministic — apply merges in order to the base 256 bytes.

Why this matters for LLM engineering

Tokenization affects everything downstream:

Context window economics: A 128k context window holds ~32k English words with GPT-4’s tokenizer (~4 chars/token) but only ~20k with a naive character tokenizer. BPE’s compression directly determines how much context fits.

Cost estimation: n4n.ai meters per-token usage across 240+ models. Knowing your tokenizer’s chars/token ratio lets you estimate spend before sending requests. Our 1000-merge tokenizer at 3.2 chars/token means 1M tokens ≈ 3.2M characters ≈ 500k English words.

Debugging weird outputs: When a model repeats “the the the” or hallucinates “ĠĠĠ”, you’re seeing tokenization artifacts. The Ġ (U+0120) is GPT’s space prefix — a BPE merge artifact. Understanding the merge table explains why “hello” tokenizes differently than “ hello“.

Multilingual performance: BPE trained on English-heavy data allocates merges to English words. Non-Latin scripts get fragmented into bytes or small chunks, burning tokens. Production tokenizers (GPT-4, Llama 3, Gemma) use byte-level BPE with careful data mixing to balance this.

Common pitfalls

Merge order matters: Applying merges out of order produces different tokenizations. Always apply in creation order (ascending token ID). Our encode method sorts by new_id for this reason.

Pre-tokenization: Real tokenizers split on whitespace/punctuation before BPE, so “hello,world” doesn’t compete with “hello world” for merges. The regex library pattern r"""'(?i:[sdmt]|ll|ve|re)|[^\r\n\p{L}\p{N}]?+\p{L}+|\p{N}{1,3}| ?[^\s\p{L}\p{N}]++[\r\n]*|\s*[\r\n]+\s*(?!\s)|\s+""" is what GPT-2/3/4 use. Our byte-level approach skips this for simplicity but loses some efficiency.

Special tokens: Production tokenizers reserve IDs for <|endoftext|>, <|im_start|>, etc. These are added after BPE training, not discovered by it.

Normalization: NFKC normalization before tokenization prevents “café” (e + combining acute) and “café” (precomposed é) from tokenizing differently. Always normalize.

Going further

From here you can:

  • Add pre-tokenization with regex splits
  • Implement the regex pattern used by OpenAI tokenizers
  • Train on mixed-language corpora and measure per-language fertility (tokens/word)
  • Build a tokenize method that returns token strings for debugging
  • Benchmark against tiktoken or transformers tokenizers

The full implementation is ~80 lines. Every production tokenizer is a variation on this loop: count pairs, merge best, repeat. The differences are in pre-tokenization, normalization, special tokens, and training data scale — not the core algorithm.

# Complete minimal implementation for reference
class MinimalBPE:
    def __init__(self):
        self.merges = {}
        self.vocab = {i: bytes([i]) for i in range(256)}
        self.next_id = 256
    
    def train(self, text: str, vocab_size: int):
        tokens = list(text.encode("utf-8"))
        while len(self.vocab) < vocab_size:
            pairs = Counter(zip(tokens, tokens[1:]))
            if not pairs: break
            top_pair, count = pairs.most_common(1)[0]
            if count < 2: break
            self.merges[self.next_id] = top_pair
            self.vocab[self.next_id] = self.vocab[top_pair[0]] + self.vocab[top_pair[1]]
            tokens = merge_pair(tokens, top_pair, self.next_id)
            self.next_id += 1
    
    def encode(self, text: str) -> list[int]:
        tokens = list(text.encode("utf-8"))
        for new_id in sorted(self.merges):
            tokens = merge_pair(tokens, self.merges[new_id], new_id)
        return tokens
    
    def decode(self, ids: list[int]) -> str:
        return b"".join(self.vocab[i] for i in ids).decode("utf-8", errors="replace")

Copy this, train on your data, inspect the merges. That’s how you stop guessing and start engineering.

Tagsbyte-pair-encodingtokenizationbpenlp

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