Existing retrieval-based reasoning approaches for large language models (LLMs) heavily rely on the density and quality of the non-parametric knowledge source to provide domain knowledge and explicit reasoning chain. However, inclusive knowledge sources are expensive and sometimes infeasible to build for scientific or corner domains. To tackle the challenges, we introduce Graph Inspired Veracity Extrapolation (GIVE), a novel reasoning framework that integrates the parametric and non-parametric memories to enhance both knowledge retrieval and faithful reasoning processes on very sparse knowledge graphs. By leveraging the external structured knowledge to inspire LLM to model the interconnections among relevant concepts, our method facilitates a more logical and step-wise reasoning approach akin to experts' problem-solving, rather than gold answer retrieval. Specifically, the framework prompts LLMs to decompose the query into crucial concepts and attributes, construct entity groups with relevant entities, and build an augmented reasoning chain by probing potential relationships among node pairs across these entity groups. Our method incorporates both factual and extrapolated linkages to enable comprehensive understanding and response generation. Extensive experiments on reasoning-intense benchmarks on biomedical and commonsense QA demonstrate the effectiveness of our proposed method. Specifically, GIVE enables GPT3.5-turbo to outperform advanced models like GPT4 without any additional training cost, thereby underscoring the efficacy of integrating structured information and internal reasoning ability of LLMs for tackling specialized tasks with limited external resources.