LLMs demonstrate strong performance in automated software engineering, particularly for code generation and issue resolution. While proprietary models like GPT-4o achieve high benchmarks scores on SWE-bench, their API dependence, cost, and privacy concerns limit adoption. Open-source alternatives offer transparency but underperform in complex tasks, especially sub-100B parameter models. Although quality Chain-of-Thought (CoT) data can enhance reasoning, current methods face two critical flaws: (1) weak rejection sampling reduces data quality, and (2) inadequate step validation causes error accumulation. These limitations lead to flawed reasoning chains that impair LLMs’ ability to learn reliable issue resolution.The paper proposes MCTS-REFINE, an enhanced Monte Carlo Tree Search (MCTS)-based algorithm that dynamically validates and optimizes intermediate reasoning steps through a rigorous rejection sampling strategy, generating high-quality CoT data to improve LLM performance in issue resolution tasks. Key innovations include: (1) augmenting MCTS with a reflection mechanism that corrects errors via rejection sampling and refinement, (2) decomposing issue resolution into three subtasks—File Localization, Fault Localization, and Patch Generation—each with clear ground-truth criteria, and (3) enforcing a strict sampling protocol where intermediate outputs must exactly match verified developer patches, ensuring correctness across reasoning paths.Experiments on SWE-bench Lite and SWE-bench Verified demonstrate that LLMs fine-tuned with our CoT dataset achieve substantial improvements over baselines. Notably, Qwen2.5-72B-Instruct achieves 28.3%(Lite) and 35.0%(Verified) resolution rates, surpassing SOTA baseline SWE-Fixer-Qwen-72B with the same parameter scale, which only reached 24.7%(Lite) and 32.8%(Verified). Given precise issue locations as input, our fine-tuned Qwen2.5-72B-Instruct model achieves an impressive issue resolution rate of 43.8%(Verified), comparable to the performance of Deepseek-v3. We open-source our MCTS-REFINE framework, CoT dataset, and fine-tuned models to advance research in AI-driven software engineering.