# Smoothing Out Hallucinations: Mitigating LLM Hallucination with Smoothed Knowledge Distillation

arXiv: https://arxiv.org/abs/2502.11306 · HTML: https://mlsanity.com/paper/2502.11306/

## Key facts

- Cited by 10 papers in the map (data through 14 Oct 2026).
- Placed in Knowledge distillation for LLMs, one of 12 directions in Knowledge distillation.
- Builds on 49 of its 68 references that are in the map.
- First posted on arXiv 16 Feb 2025.

## Placed in

- Knowledge distillation / [Knowledge distillation for LLMs](https://mlsanity.com/distill/knowledge-distillation-for-llms/)

## Builds on (most cited first, 30 of 49)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Exploring the Limits of Transfer Learning with a Unified Text-to-Text Transformer](https://mlsanity.com/paper/1910.10683/) (2019)
- [Llama 2: Open Foundation and Fine-Tuned Chat Models](https://mlsanity.com/paper/2307.09288/) (2023)
- [Distilling the Knowledge in a Neural Network](https://mlsanity.com/paper/1503.02531/) (2015)
- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [Measuring Massive Multitask Language Understanding](https://mlsanity.com/paper/2009.03300/) (2020)
- [PaLM: Scaling Language Modeling with Pathways](https://mlsanity.com/paper/2204.02311/) (2022)
- [On Calibration of Modern Neural Networks](https://mlsanity.com/paper/1706.04599/) (2017)
- [Think you have Solved Question Answering? Try ARC, the AI2 Reasoning Challenge](https://mlsanity.com/paper/1803.05457/) (2018)
- [HellaSwag: Can a Machine Really Finish Your Sentence?](https://mlsanity.com/paper/1905.07830/) (2019)
- [HotpotQA: A Dataset for Diverse, Explainable Multi-hop Question Answering](https://mlsanity.com/paper/1809.09600/) (2018)
- [OPT: Open Pre-trained Transformer Language Models](https://mlsanity.com/paper/2205.01068/) (2022)
- [QLoRA: Efficient Finetuning of Quantized LLMs](https://mlsanity.com/paper/2305.14314/) (2023)
- [Qwen Technical Report](https://mlsanity.com/paper/2309.16609/) (2023)
- [TruthfulQA: Measuring How Models Mimic Human Falsehoods](https://mlsanity.com/paper/2109.07958/) (2021)
- [The Curious Case of Neural Text Degeneration](https://mlsanity.com/paper/1904.09751/) (2019)
- [Locating and Editing Factual Associations in GPT](https://mlsanity.com/paper/2202.05262/) (2022)
- [Can a Suit of Armor Conduct Electricity? A New Dataset for Open Book Question Answering](https://mlsanity.com/paper/1809.02789/) (2018)
- [REALM: Retrieval-Augmented Language Model Pre-Training](https://mlsanity.com/paper/2002.08909/) (2020)
- [Gemma 2: Improving Open Language Models at a Practical Size](https://mlsanity.com/paper/2408.00118/) (2024)
- [CommonsenseQA: A Question Answering Challenge Targeting Commonsense Knowledge](https://mlsanity.com/paper/1811.00937/) (2018)
- [Pythia: A Suite for Analyzing Large Language Models Across Training and Scaling](https://mlsanity.com/paper/2304.01373/) (2023)
- [MS MARCO: A Human Generated MAchine Reading COmprehension Dataset](https://mlsanity.com/paper/1611.09268/) (2016)
- [FEVER: a large-scale dataset for Fact Extraction and VERification](https://mlsanity.com/paper/1803.05355/) (2018)
- [Don't Give Me the Details, Just the Summary! Topic-Aware Convolutional Neural Networks for Extreme Summarization](https://mlsanity.com/paper/1808.08745/) (2018)
- [Get To The Point: Summarization with Pointer-Generator Networks](https://mlsanity.com/paper/1704.04368/) (2017)
- [PubMedQA: A Dataset for Biomedical Research Question Answering](https://mlsanity.com/paper/1909.06146/) (2019)
- [PEGASUS: Pre-training with Extracted Gap-sentences for Abstractive Summarization](https://mlsanity.com/paper/1912.08777/) (2019)

## Built on by (most cited first, 10 of 10)

- [Large Language Models Hallucination: A Comprehensive Survey](https://mlsanity.com/paper/2510.06265/) (2025)
- [SwS: Self-aware Weakness-driven Problem Synthesis in Reinforcement Learning for LLM Reasoning](https://mlsanity.com/paper/2506.08989/) (2025)
- [The Illusion of Progress: Re-evaluating Hallucination Detection in LLMs](https://mlsanity.com/paper/2508.08285/) (2025)
- [Stop Rewarding Hallucinated Steps: Faithfulness-Aware Step-Level Reinforcement Learning for Small Reasoning Models](https://mlsanity.com/paper/2602.05897/) (2026)
- [Fine-Tuned LLMs Know They Don't Know: A Parameter-Efficient Approach to Recovering Honesty](https://mlsanity.com/paper/2511.12991/) (2025)
- [LANCET: Neural Intervention via Structural Entropy for Mitigating Faithfulness Hallucinations in LLMs](https://mlsanity.com/paper/2601.01401/) (2026)
- [How Is Uncertainty Propagated in Knowledge Distillation?](https://mlsanity.com/paper/2601.18909/) (2026)
- [Distilling Reasoning Without Knowledge: A Framework for Reliable LLMs](https://mlsanity.com/paper/2603.14458/) (2026)
- [PRISM: Probability Reallocation with In-Span Masking for Knowledge-Sensitive Alignment](https://mlsanity.com/paper/2604.01682/) (2026)
- [Information Extraction from Electricity Invoices with General-Purpose Large Language Models](https://mlsanity.com/paper/2604.25927/) (2026)

## Abstract (arXiv)

Large language models (LLMs) often suffer from hallucination, generating factually incorrect or ungrounded content, which limits their reliability in high-stakes applications. A key factor contributing to hallucination is the use of hard labels during training, which enforce deterministic supervision, encourage overconfidence, and disregard the uncertainty inherent in natural language. To address this, we propose mitigating hallucination through knowledge distillation (KD), where a teacher model provides smoothed soft labels to a student model, reducing overconfidence and improving factual grounding. We apply KD during supervised finetuning on instructional data, evaluating its effectiveness across LLMs from different families. Experimental results on summarization benchmarks demonstrate that KD reduces hallucination compared to standard finetuning while preserving performance on general NLP tasks. These findings highlight KD as a promising approach for mitigating hallucination in LLMs and improving model reliability.