Abstract reasoning and logic inference are difficult problems for neural networks, yet essential to their applicability in highly structured domains. In this work we demonstrate that a well known technique such as spectral regularization can significantly boost the capabilities of a neural learner. We introduce the Neural Abstract Reasoner (NAR) , a memory augmented architecture capable of learning and using abstract rules. We show that, when trained with spectral regularization, NAR achievesaccuracy on the Abstraction and Reasoning Corpus, improving performance 4 times over the best known human hand-crafted symbolic solvers. We provide some intuition for the effects of spectral regularization in the domain of abstract reasoning based on theoretical generalization bounds and Solomonoff’s theory of inductive inference.