# DiaTool-DPO: Multi-Turn Direct Preference Optimization for Tool-Augmented Large Language Models

arXiv: https://arxiv.org/abs/2504.02882 · HTML: https://mlsanity.com/paper/2504.02882/

## Key facts

- Cited by 8 papers in the map (data through 14 Oct 2026).
- Placed in LLM preference optimization methods, one of 10 directions in LLM alignment / RLHF / preference optimisation.
- Builds on 23 of its 41 references that are in the map.
- First posted on arXiv 2 Apr 2025.

## Placed in

- LLM alignment / RLHF / preference optimisation / [LLM preference optimization methods](https://mlsanity.com/alignment/llm-preference-optimization-methods/)

## Builds on (most cited first, 23 of 23)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Learning to summarize from human feedback](https://mlsanity.com/paper/2009.01325/) (2020)
- [ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs](https://mlsanity.com/paper/2307.16789/) (2023)
- [Gorilla: Large Language Model Connected with Massive APIs](https://mlsanity.com/paper/2305.15334/) (2023)
- [WebShop: Towards Scalable Real-World Web Interaction with Grounded Language Agents](https://mlsanity.com/paper/2207.01206/) (2022)
- [ALFWorld: Aligning Text and Embodied Environments for Interactive Learning](https://mlsanity.com/paper/2010.03768/) (2020)
- [SimPO: Simple Preference Optimization with a Reference-Free Reward](https://mlsanity.com/paper/2405.14734/) (2024)
- [ORPO: Monolithic Preference Optimization without Reference Model](https://mlsanity.com/paper/2403.07691/) (2024)
- [Towards Scalable Multi-domain Conversational Agents: The Schema-Guided Dialogue Dataset](https://mlsanity.com/paper/1909.05855/) (2019)
- [Contrastive Preference Optimization: Pushing the Boundaries of LLM Performance in Machine Translation](https://mlsanity.com/paper/2401.08417/) (2024)
- [ToolAlpaca: Generalized Tool Learning for Language Models with 3000 Simulated Cases](https://mlsanity.com/paper/2306.05301/) (2023)
- [ScienceWorld: Is your Agent Smarter than a 5th Grader?](https://mlsanity.com/paper/2203.07540/) (2022)
- [ToolSandbox: A Stateful, Conversational, Interactive Evaluation Benchmark for LLM Tool Use Capabilities](https://mlsanity.com/paper/2408.04682/) (2024)
- [A Survey of Reinforcement Learning from Human Feedback](https://mlsanity.com/paper/2312.14925/) (2023)
- [MetaTool Benchmark for Large Language Models: Deciding Whether to Use Tools and Which to Use](https://mlsanity.com/paper/2310.03128/) (2023)
- [APIGen: Automated Pipeline for Generating Verifiable and Diverse Function-Calling Datasets](https://mlsanity.com/paper/2406.18518/) (2024)
- [Making Language Models Better Tool Learners with Execution Feedback](https://mlsanity.com/paper/2305.13068/) (2023)
- [Building Math Agents with Multi-Turn Iterative Preference Learning](https://mlsanity.com/paper/2409.02392/) (2024)
- [Direct Multi-Turn Preference Optimization for Language Agents](https://mlsanity.com/paper/2406.14868/) (2024)
- [Learning to Clarify: Multi-turn Conversations with Action-Based Contrastive Self-Training](https://mlsanity.com/paper/2406.00222/) (2024)
- [Can Tool-augmented Large Language Models be Aware of Incomplete Conditions?](https://mlsanity.com/paper/2406.12307/) (2024)
- [FunctionChat-Bench: Comprehensive Evaluation of Language Models' Generative Capabilities in Korean Tool-use Dialogs](https://mlsanity.com/paper/2411.14054/) (2024)

## Built on by (most cited first, 8 of 8)

- [Towards General Agentic Intelligence via Environment Scaling](https://mlsanity.com/paper/2509.13311/) (2025)
- [PARL-MT: Learning to Call Functions in Multi-Turn Conversation with Progress Awareness](https://mlsanity.com/paper/2509.23206/) (2025)
- [FinTrace: Holistic Trajectory-Level Evaluation of LLM Tool Calling for Long-Horizon Financial Tasks](https://mlsanity.com/paper/2604.10015/) (2026)
- [Healthcare AI GYM for Medical Agents](https://mlsanity.com/paper/2605.02943/) (2026)
- [Agentic-DPO: From Imitation to Agentic Policy Optimization on Expert Trajectories](https://mlsanity.com/paper/2607.10601/) (2026)
- [Beyond Fast and Slow: Cognitive-Inspired Elastic Reasoning for Large Language Models](https://mlsanity.com/paper/2512.15089/) (2025)
- [Emerging from Ground: Addressing Intent Deviation in Tool-Using Agents via Deriving Real Calls into Virtual Trajectories](https://mlsanity.com/paper/2601.15120/) (2026)
- [Clueing up LLMs with Tool-Augmented Deductive Reasoning](https://mlsanity.com/paper/2609.18736/) (2026)

## Abstract (arXiv)

Tool-Augmented Larage Language Models (TA-LLMs) have shown promise in real-world applications, but face challenges in handling incomplete queries and out-of-scope requests. While existing approaches rely mainly on Supervised Fine-Tuning with expert trajectories, we propose DiaTool-DPO, a novel method that enhances TA-LLM's dialogue capabilities through Direct Preference Optimization. We model TA-LLM interactions as a Markov Decision Process with 5 distinct dialogue states and categorize user queries into 3 types based on their state transition trajectories. We automatically construct paired trajectory datasets of correct and incorrect dialogue flows and introduce a specialized objective loss for dialogue control. Our comprehensive evaluation demonstrates that DiaTool-DPO approaches GPT-4o's performance (94.8% in information gathering, 91% in tool call rejection) with substantial improvements over baseline (44% and 9.6% respectively) while maintaining core functionality. Our approach opens new possibilities for developing TA-LLMs that can handle diverse real-world scenarios without requiring additional expert demonstrations or human labeling.
