Chain-of-thought (CoT) reasoning has significantly improved the reasoning ability of large vision-language models (LVLMs) by verbalizing intermediate reasoning steps in natural language. However, such discrete textual rationales are often insufficient for encoding continuous visual evidence. Recent work addresses this limitation by moving reasoning into continuous latent space. Despite promising progress, existing methods leave latent reasoning insufficiently connected to the compositional and relational structure of visual evidence. To address this gap, we introduce ReGuLaR, a relation grounded latent reasoning framework that explicitly grounds latent states in these critical yet overlooked visual evidence. ReGuLaR uses a training-time ReGFormer to focus latent reasoning on question-relevant objects and inter-object relations, while at inference time the model reasons and generates answers without invoking the ReGFormer. To support training ReGuLaR, we construct RGROUNDING-351K, a real-world vision-language dataset annotated with key object bounding boxes and inter-object relations. Extensive experiments across diverse benchmarks show that ReGuLaR consistently outperforms existing approaches and achieves state-of-the-art performance. We include our code in the submission and will release the code and training data publicly upon acceptance.