Large Reasoning Models (LRMs) have advanced rapidly; however, existing benchmarks in mathematics, code, and common-sense reasoning remain limited. They lack long-context evaluation, offer insufficient challenge, and provide answers that are difficult to verify programmatically. We introduce GrAlgoBench, a benchmark designed to evaluate LRMs through graph algorithm problems. Such problems are particularly well suited for probing reasoning abilities: they demand long-context reasoning, allow fine-grained control of difficulty levels, and enable standardized, programmatic evaluation. Across nine tasks, our systematic experiments reveal two major weaknesses of current LRMs. First, accuracy deteriorates sharply as context length increases, falling below 50% once graphs exceed 120 nodes. This degradation is driven by frequent execution errors, weak memory, and redundant reasoning. Second, LRMs suffer from an over-thinking phenomenon, primarily caused by extensive yet largely ineffective self-verification, which inflates reasoning traces without improving correctness. By exposing these limitations, GrAlgoBench establishes graph algorithm problems as a rigorous, multidimensional, and practically relevant testbed for advancing the study of reasoning in LRMs. Code is available at https://github.com/Bklight999/GrAlgoBench.