Analyzing fine-grained skill activities (e.g., sports, surgery) requires not only recognizing visual patterns but also performing step-by-step visual reasoning that leads to the final judgment. While recent advances in action quality assessment have achieved remarkable progress in evaluating performance, existing models remain black boxes, where they lack the ability to explicitly reveal the reasoning processes underlying their judgments. To address this limitation, we propose Latent Visual Diffusion Reasoning (LVDR), a novel framework that integrates keypoint-guided Monte Carlo Tree Search (MCTS) to model and visualize the latent visual reasoning process. LVDR not only produces more accurate skill assessments but also uncovers the critical visual reasoning sequences that contribute to the final evaluation. Extensive experiments across four datasets spanning diverse sports and surgical domains demonstrate that LVDR achieves competitive quantitative performance while providing interpretable visual reasoning trajectories leading to the final predictions. Source codes and models can be found through the following link: https://github.com/XiruiTeng/LVDR_Official.git.
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