Emerging from the pairwise attention in conventional Transformers, there is a growing interest in sparse attention mechanisms that align more closely with localized, contextual learning in the biological brain. Existing studies such as the Coordination method employ iterative cross-attention mechanisms with a bottleneck to enable the sparse association of inputs. However, these methods are parameter inefficient and fail in more complex relational reasoning tasks. To this end, we propose Associative Transformer (AiT) to enhance the association among sparsely attended input tokens, improving parameter efficiency and performance in various classification and relational reasoning tasks. AiT leverages a learnable explicit memory comprising specialized priors that guide bottleneck attentions to facilitate the extraction of diverse localized tokens. Moreover, AiT employs an associative memory-based token reconstruction using a Hopfield energy function. The extensive empirical experiments demonstrate that AiT requires significantly fewer parameters and attention layers outperforming a broad range of sparse Transformer models. Additionally, AiT outperforms the SOTA sparse Transformer models including the Coordination method on the Sort-of-CLEVR dataset.