arXiv:2509.25794v1 Announce Type: cross Abstract: Vision-Language Models (VLMs) have demonstrated impressive world knowledge across a wide range of tasks, making them promising candidates for embodied reasoning applications. However, existing benchmarks primarily evaluate the embodied reasoning ability of VLMs through multiple-choice questions based on image annotations -- for example, selecting which trajectory better describes an event in the image. In this work, we introduce the Point-It-Out (PIO) benchmark, a novel benchmark designed to systematically assess the embodied reasoning abilities of VLMs through precise visual grounding. We propose a hierarchical evaluation protocol spanning three stages (S1: referred-object localization, S2: task-driven pointing, and S3: visual trace prediction), with data collected from critical domains for embodied intelligence, including indoor, kitchen, driving, and robotic manipulation scenarios. Extensive experiments with over ten state-of-the-art VLMs reveal several interesting findings. For example, strong general-purpose models such as GPT-4o, while excelling on many benchmarks (e.g., language, perception, and reasoning), underperform compared to some open-source models in precise visual grounding; models such as MoLMO perform well in S1 and S2 but struggle in S3, where requires grounding combined with visual trace planning.