Large Language Models (LLMs) often struggle to provide transparent and interpretable responses, making it challenging for humans to understand their thought process. Recent advancements in chain-of-thought reasoning and reinforcement learning aim to address this opacity by rewarding models that adhere to format and accuracy, encouraging the development of emergent human-like reasoning traces. Synthetic datasets with embedded reasoning traces play a crucial role in this development, especially when combined with advanced reasoning models and fine-tuning approaches like those used in DeepSeek-R1. These synthetic datasets can enhance transparency and trustworthiness, systematic generalization with human-like logic, alignment with advanced reinforcement learning techniques, and cold-start training for reinforcement learning. They also provide a powerful way to train and improve AI systems by including scenarios that prompt AI to respond with both accuracy and sensitivity, such as everyday social interactions or customer service. Tools like Gretel Navigator make it easier than ever to generate high-quality synthetic datasets with embedded reasoning traces, enabling rapid prototyping and testing, contributing to the development of more transparent AI reasoning models, and facilitating the creation of large, diverse datasets that include both problem statements and detailed reasoning.