Scaling inference-time computation has emerged as a reliable method to improve the performance of large language models on complex reasoning and programming tasks. However, standard approaches such as independent sampling and sequential multi-turn refinement operate without token-level credit assignment, resulting in computational inefficiency, since valid reasoning prefixes are frequently discarded. In this work, we introduce Test-Time Scaling via Error Localization (TTEL), an inference-time algorithm that utilizes fixed or environment feedback to perform token-level error localization. By comparing conditional probabilities under informed feedback against a null-context baseline, TTEL isolates the step at which an error occurred. The algorithm then truncates the trajectory and branches a new generation, maximally reusing the valid prefix. Extensive evaluations demonstrate that TTEL establishes strictly dominating Pareto frontiers across sequential reasoning domains, measured by pass-at-k vs. generated-token cost. With Qwen3-8B on LiveCodeBench, TTEL attains a pass@64 of 71.0% while generating approximately half as many tokens as independent sampling (360.4k vs. 735.0k). Generalizing to math benchmarks AIME-2025 and HMMT-2025, TTEL cleanly outperforms competing test-time baselines across both Qwen3-8B and Qwen3-4B-Thinking-2507.

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