arXiv:2601.05539v2 Announce Type: replace Abstract: LLM-integrated software, which embeds or interacts with large language models (LLMs) as functional components, exhibits probabilistic and context-dependent behaviors that fundamentally differ from those of traditional software. This shift introduces a new category of integration defects that arise not only from code errors but also from misaligned interactions among LLM-specific artifacts, including prompts, API calls, configurations, and model outputs. However, existing defect localization techniques are ineffective at identifying these LLM-specific integration defects because they fail to capture cross-layer dependencies across heterogeneous artifacts, cannot exploit incomplete or misleading error traces, and lack semantic reasoning capabilities for identifying root causes. To address these challenges, we propose LIDL, a multi-agent framework for defect localization in LLM-integrated software. LIDL (1) constructs a code knowledge graph enriched with LLM-related annotations that represent interaction boundaries across source code, prompts, and configuration files, (2) fuses complementary sources of error evidence to surface candidate defect locations, and (3) applies context-aware validation that uses counterfactual reasoning to distinguish true root causes from propagated symptoms. We evaluate LIDL on 146 real-world defect instances collected from 105 GitHub repositories and 16 agent-based systems. The results show that LIDL significantly outperforms seven state-of-the-art baselines in localization accuracy, improving Top-3 accuracy by 19.15%, 21.69%, and 21.65% at the file, function, and line levels. Notably, LIDL achieves these gains at a lower cost than most baselines. Our localization results also improve downstream repair success by 30.77% over the best-performing baselines.