We Rebuilt Our RAG Stack Three Times — Here's What Finally Worked
TL;DR
A complete, up-to-date breakdown of we rebuilt our RAG stack for developers and founders. It covers the core ideas, the trade-offs that matter, a practical workflow, real numbers, and the questions people ask most — written to be skimmed, applied, and shared.
Key takeaways
- Start with Postgres and pgvector before reaching for a dedicated vector database; adopt a specialized engine only when scale, latency, or filtering demands force the move.
- RAG is retrieval plus generation: fix the retrieval half first, because a great model cannot answer from context it never received.
- Chunk on semantic and structural boundaries, not arbitrary character counts, and store metadata so you can filter and cite precisely.
- Combine dense semantic search with sparse keyword search (BM25) using hybrid retrieval, because each catches failures the other misses.
- Never embed a query with one model and your corpus with another; the query and document vectors must live in the same embedding space.
This is a practical, up-to-date guide to We Rebuilt Our RAG Stack — what it is, why it matters in 2026, and how to apply it in real projects. It is written for developers and founders who want clear answers and proven best practices, not filler.
Whether you're just starting out or leveling up, treat this as a working reference you can return to. Every section is built to be skimmed, applied, and shared.
GraphRAG and structured retrieval
Plain vector RAG retrieves passages independently, which works for direct lookups but struggles with questions that require synthesizing information scattered across many documents. GraphRAG, introduced by Microsoft Research in 2024, first uses an LLM to extract entities and relationships into a knowledge graph, then clusters and summarizes that graph so retrieval can operate over structured, connected knowledge. This helps with global sensemaking questions like "what are the main themes across this corpus" that flat similarity search answers poorly. The tradeoff is cost and complexity, since building and maintaining the graph consumes many LLM calls, so GraphRAG is best reserved for corpora where cross-document reasoning genuinely matters rather than as a default for every application.
Getting started and where the field is heading
A pragmatic first build is small: a handful of well-chunked documents, a solid off-the-shelf embedding model, pgvector or a lightweight store like Chroma, hybrid search, and a reranker, wired together with a framework such as LlamaIndex or LangChain or with plain code. Prove it works on a real evaluation set before scaling infrastructure, because premature adoption of a distributed vector database often adds complexity without solving the actual retrieval problems. Looking ahead, agentic retrieval that plans multi-step searches, longer context windows that shift some burden away from aggressive chunking, and multimodal embeddings over images and tables are all active areas. The durable lesson is that retrieval quality, evaluation discipline, and clean data pipelines matter more than the specific database, and those fundamentals will outlast any single vendor.
Embeddings: turning text into vectors
Embeddings are dense numeric vectors that place semantically similar text close together in a high-dimensional space, so that cosine similarity or dot product approximates meaning. Sentence-level models such as the Sentence-Transformers (SBERT) family, OpenAI's text-embedding-3 series, Cohere Embed, and open models like BGE and E5 are trained specifically for retrieval rather than for generation. Choosing a model means balancing dimensionality, cost, latency, and how well it handles your domain and languages; the public MTEB leaderboard is a useful starting point but not a substitute for testing on your own data. A critical rule is consistency: queries and documents must be embedded by the same model, and some models expect asymmetric prompts that distinguish a short query from a longer passage.
Reranking for precision at the top
Retrieval typically returns a few dozen plausible candidates, but the generator can only use a handful, so the ordering of those top results is what actually reaches the model. A reranker is a cross-encoder that reads the query and each candidate passage together and scores their relevance directly, which is far more accurate than the independent vector similarity used during first-stage retrieval. Because cross-encoders are too slow to run over an entire corpus, they are applied only to the shortlist, giving a strong precision boost for modest added latency. Hosted rerankers such as Cohere Rerank and open cross-encoder models from the Sentence-Transformers ecosystem make this one of the easiest high-impact upgrades to a RAG stack.
Evaluating retrieval and generation
You cannot improve a RAG system you cannot measure, and the two halves must be measured separately because a good answer requires both good retrieval and faithful generation. Retrieval quality is assessed with information-retrieval metrics such as recall at k, precision, and mean reciprocal rank against a labeled set of questions with known relevant chunks. Generation quality is judged on faithfulness, whether the answer is supported by the retrieved context, and on answer relevance, increasingly with frameworks like RAGAS or an LLM-as-judge approach. The essential discipline is to build a representative evaluation set from real questions early, so that every change to chunking, embeddings, or reranking can be validated with numbers rather than vibes.
Semantic versus keyword versus hybrid search
Keyword search, classically BM25, matches on exact terms and excels at precise identifiers, product codes, names, and rare tokens that embeddings can blur together. Semantic search over embeddings captures meaning and paraphrase, so it finds relevant passages even when the wording differs from the query. Each approach fails where the other is strong, which is why hybrid search, running both and fusing the results, is now a common default. A widely used fusion method is Reciprocal Rank Fusion, which combines ranked lists without needing the two systems' scores to be on the same scale, and most mature vector engines now expose hybrid retrieval directly.
We Rebuilt Our RAG Stack: Key Facts and Data
According to recent industry research and the official documentation linked below:
- Industry surveys through 2024 and 2025 consistently rank RAG among the most common patterns for production generative-AI applications, frequently cited alongside prompting and fine-tuning as a top approach for enterprise deployments.
- The MTEB (Massive Text Embedding Benchmark) leaderboard on Hugging Face has become the de facto public scoreboard for comparing embedding models across dozens of retrieval, classification and clustering tasks.
- RAG entered the mainstream after the 2020 Facebook AI Research paper "Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks", and by 2025 it had become the default architecture for grounding LLMs in private or up-to-date data.
Quick-Reference Summary
A map of what this guide covers:
| Topic | What you'll learn |
|---|---|
| GraphRAG and structured retrieval | Plain vector RAG retrieves passages independently |
| Getting started and where the field is heading | A pragmatic first build is small: a handful of well-chunked documents, a solid off-the-shelf embedding model, pgvector |
| Embeddings: turning text into vectors | Embeddings are dense numeric vectors that place semantically similar text close together in a high-dimensional space |
| Reranking for precision at the top | Retrieval typically returns a few dozen plausible candidates |
| Evaluating retrieval and generation | You cannot improve a RAG system you cannot measure |
| Semantic versus keyword versus hybrid search | Keyword search, classically BM25, matches on exact terms and excels at precise identifiers, product codes, names, and |
How to Get Started with We Rebuilt Our RAG Stack
A simple path that works:
- Learn the fundamentals of We Rebuilt Our RAG Stack from primary sources, not just tutorials.
- Build one small, real project end to end.
- Get feedback, refactor, and add tests.
- Ship it publicly and document what you learned.
- Repeat with a slightly harder project each time.
Build It with a World-Class Full Stack Developer
Sandeep Kumar Chaudhary is a full stack world-class developer. If you want to turn this into a real, production-ready product, get in touch — message directly on WhatsApp at +9779802348957 for a fast, no-pressure consult.
You can also explore the projects already shipped to thousands of users, or start a conversation here.
Final Thoughts
Start with Postgres and pgvector before reaching for a dedicated vector database; adopt a specialized engine only when scale, latency, or filtering demands force the move. The developers and teams who win in 2026 pair strong fundamentals with consistent shipping. Start small, stay curious, build in public, and revisit this guide as your skills grow.
Sources and Further Reading
Frequently Asked Questions
What is we rebuilt our rag stack?
A pragmatic first build is small: a handful of well-chunked documents, a solid off-the-shelf embedding model, pgvector or a lightweight store like Chroma, hybrid search, and a reranker, wired together with a framework such as LlamaIndex or LangChain or with plain code. Prove it works on a real evaluation set before scaling infrastructure, because premature adoption of a distributed vector database often adds complexity without solving the actual retrieval problems. This guide covers we rebuilt our RAG stack end to end — core concepts, best practices, concrete data, and a step-by-step approach you can apply right away.
How should I chunk my documents?
Split on natural boundaries such as headings, paragraphs, sentences, or code blocks rather than fixed character counts, and add a little overlap so ideas spanning a boundary are not cut in half. Attach metadata like document title and section to each chunk so you can filter and cite precisely. A useful pattern is to embed and match on small chunks but return a larger parent chunk to the model for context, and to keep tables and code intact rather than shredding them.
Do I need a dedicated vector database, or can I use PostgreSQL?
For most projects you can and should start with PostgreSQL plus the pgvector extension, which keeps your vectors next to your relational data and transactions. A dedicated vector database like Pinecone, Qdrant, Weaviate, or Milvus becomes worthwhile when you outgrow that setup, typically at large scale, when you need very low latency, or when you require advanced filtering and hybrid search out of the box. Choosing a specialized engine early often adds operational complexity without solving your real retrieval problems.
When should I use GraphRAG instead of regular vector RAG?
Use GraphRAG when your questions require connecting facts spread across many documents or summarizing an entire corpus, which flat vector retrieval handles poorly. GraphRAG builds a knowledge graph of entities and relationships and lets retrieval operate over that structure, but it costs many extra LLM calls to construct and maintain. For direct lookups where the answer sits in one or a few passages, plain vector RAG is cheaper, simpler, and usually good enough.
What is retrieval-augmented generation in simple terms?
RAG is a technique where a language model looks up relevant information from an external source and uses it to answer a question, rather than relying only on what it memorized during training. At query time the system retrieves the most relevant passages, adds them to the prompt, and asks the model to answer from that supplied context. This lets the model use private, current, or specialized data and makes it possible to cite where an answer came from.
Sandeep Kumar Chaudhary
Full Stack Software Developer· Nepal's SEO, AEO, GEO & AIO expert and share-market educator. More about me