To overcome the Limitations of Retrieval Augmented Generation (RAG), we introduce PropRAG, a novel RAG framework that utilizes context-rich propositions and discovers multi-stage inference paths via efficient beam search. Existing RAGs struggle with complex multi-stage inference due to their reliance on independent knowledge retrieval, and structured RAGs based on knowledge graphs suffer from context collapse of triples, resulting in low accuracy in knowledge representation. PropRAG achieves state-of-the-art zero-shot recall@5 and F1 score on the 2Wiki, HotpotQA, and MuSiQue datasets.