# Revisiting On-Policy Distillation: Empirical Failure Modes and Simple Fixes

arXiv: https://arxiv.org/abs/2603.25562 · HTML: https://mlsanity.com/paper/2603.25562/

## Key facts

- Cited by 145 papers in the map (data through 14 Oct 2026).
- Placed in On-policy and self-distillation for LLMs, one of 12 directions in Knowledge distillation.
- Builds on 32 of its 42 references that are in the map.
- First posted on arXiv 26 Mar 2026.

## Placed in

- Knowledge distillation / [On-policy and self-distillation for LLMs](https://mlsanity.com/distill/on-policy-and-self-distillation-for-llms/)

## Builds on (most cited first, 30 of 32)

- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [Distilling the Knowledge in a Neural Network](https://mlsanity.com/paper/1503.02531/) (2015)
- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [Measuring Mathematical Problem Solving With the MATH Dataset](https://mlsanity.com/paper/2103.03874/) (2021)
- [Qwen2.5 Technical Report](https://mlsanity.com/paper/2412.15115/) (2024)
- [DistilBERT, a distilled version of BERT: smaller, faster, cheaper and lighter](https://mlsanity.com/paper/1910.01108/) (2019)
- [DAPO: An Open-Source LLM Reinforcement Learning System at Scale](https://mlsanity.com/paper/2503.14476/) (2025)
- [HybridFlow: A Flexible and Efficient RLHF Framework](https://mlsanity.com/paper/2409.19256/) (2024)
- [Solving Quantitative Reasoning Problems with Language Models](https://mlsanity.com/paper/2206.14858/) (2022)
- [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)
- [OlympiadBench: A Challenging Benchmark for Promoting AGI with Olympiad-Level Bilingual Multimodal Scientific Problems](https://mlsanity.com/paper/2402.14008/) (2024)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [Sequence-Level Knowledge Distillation](https://mlsanity.com/paper/1606.07947/) (2016)
- [GLM-5: from Vibe Coding to Agentic Engineering](https://mlsanity.com/paper/2602.15763/) (2026)
- [Group-in-Group Policy Optimization for LLM Agent Training](https://mlsanity.com/paper/2505.10978/) (2025)
- [Self-Distilled Reasoner: On-Policy Self-Distillation for Large Language Models](https://mlsanity.com/paper/2601.18734/) (2026)
- [Reinforcement Learning via Self-Distillation](https://mlsanity.com/paper/2601.20802/) (2026)
- [OpenThoughts: Data Recipes for Reasoning Models](https://mlsanity.com/paper/2506.04178/) (2025)
- [MiMo-V2-Flash Technical Report](https://mlsanity.com/paper/2601.02780/) (2026)
- [On-Policy Context Distillation for Language Models](https://mlsanity.com/paper/2602.12275/) (2026)
- [Learning beyond Teacher: Generalized On-Policy Distillation with Reward Extrapolation](https://mlsanity.com/paper/2602.12125/) (2026)
- [Entropy-Aware On-Policy Distillation of Language Models](https://mlsanity.com/paper/2603.07079/) (2026)
- [Retaining by Doing: The Role of On-Policy Data in Mitigating Forgetting](https://mlsanity.com/paper/2510.18874/) (2025)
- [OpenClaw-RL: Train Any Agent Simply by Talking](https://mlsanity.com/paper/2603.10165/) (2026)
- [Scaling Reasoning Efficiently via Relaxed On-Policy Distillation](https://mlsanity.com/paper/2603.11137/) (2026)
- [Towards Cross-Tokenizer Distillation: the Universal Logit Distillation Loss for LLMs](https://mlsanity.com/paper/2402.12030/) (2024)
- [Black-Box On-Policy Distillation of Large Language Models](https://mlsanity.com/paper/2511.10643/) (2025)
- [Universal Cross-Tokenizer Distillation via Approximate Likelihood Matching](https://mlsanity.com/paper/2503.20083/) (2025)
- [To Mix or To Merge: Toward Multi-Domain Reinforcement Learning for Large Language Models](https://mlsanity.com/paper/2602.12566/) (2026)

## Built on by (most cited first, 30 of 145)

- [Rethinking On-Policy Distillation of Large Language Models: Phenomenology, Mechanism, and Recipe](https://mlsanity.com/paper/2604.13016/) (2026)
- [A Survey of On-Policy Distillation for Large Language Models](https://mlsanity.com/paper/2604.00626/) (2026)
- [Self-Distilled RLVR](https://mlsanity.com/paper/2604.03128/) (2026)
- [Uni-OPD: Unifying On-Policy Distillation with a Dual-Perspective Recipe](https://mlsanity.com/paper/2605.03677/) (2026)
- [RLCSD: Reinforcement Learning with Contrastive On-Policy Self-Distillation](https://mlsanity.com/paper/2606.11709/) (2026)
- [SCOPE: Signal-Calibrated On-Policy Distillation Enhancement with Dual-Path Adaptive Weighting](https://mlsanity.com/paper/2604.10688/) (2026)
- [Lightning OPD: Efficient Post-Training for Large Reasoning Models with Offline On-Policy Distillation](https://mlsanity.com/paper/2604.13010/) (2026)
- [Filter, Then Reweight: Rethinking Optimization Granularity in On-Policy Distillation](https://mlsanity.com/paper/2606.02684/) (2026)
- [OPID: On-Policy Skill Distillation for Agentic Reinforcement Learning](https://mlsanity.com/paper/2606.26790/) (2026)
- [On-Policy Distillation with Curriculum Turn-level Guidance for Multi-turn Agents](https://mlsanity.com/paper/2606.15912/) (2026)
- [Rethinking On-Policy Distillation of Large Language Models II: One Training Example](https://mlsanity.com/paper/2609.04172/) (2026)
- [Scaling the Horizon, Not the Parameters: Reaching Trillion-Parameter Performance with a 35B Agent](https://mlsanity.com/paper/2606.30616/) (2026)
- [SOD: Step-wise On-policy Distillation for Small Language Model Agents](https://mlsanity.com/paper/2605.07725/) (2026)
- [Decoupling KL and Trajectories: A Unified Perspective for SFT, DAgger, Offline RL, and OPD in LLM Distillation](https://mlsanity.com/paper/2605.16826/) (2026)
- [Learning to Foresee: Unveiling the Unlocking Efficiency of On-Policy Distillation](https://mlsanity.com/paper/2605.11739/) (2026)
- [On the Geometry of On-Policy Distillation](https://mlsanity.com/paper/2606.07082/) (2026)
- [Pass the Baton: Trajectory-Relayed On-Policy Distillation](https://mlsanity.com/paper/2607.26057/) (2026)
- [MAD-OPD: Breaking the Ceiling in On-Policy Distillation via Multi-Agent Debate](https://mlsanity.com/paper/2605.01347/) (2026)
- [Are Full Rollouts Necessary for On-Policy Distillation?](https://mlsanity.com/paper/2605.31490/) (2026)
- [On-Policy Self-Distillation without Any Supervision](https://mlsanity.com/paper/2608.06296/) (2026)
- [Prefix Teach, Suffix Fade: Local Teachability Collapse in Strong-to-Weak On-Policy Distillation](https://mlsanity.com/paper/2605.13643/) (2026)
- [Trajectory-Refined Distillation](https://mlsanity.com/paper/2606.08432/) (2026)
- [Counteraction-Aware Multi-Teacher On-Policy Distillation for General Capability Recovery with Domain Preservation](https://mlsanity.com/paper/2605.27115/) (2026)
- [On-policy Distillation with Verifiable Reward](https://mlsanity.com/paper/2608.24696/) (2026)
- [Rubric-based On-policy Distillation](https://mlsanity.com/paper/2605.07396/) (2026)
- [Your Teacher Can't Help You Here: Combating Supervision Fidelity Decay in On-Policy Distillation](https://mlsanity.com/paper/2605.30833/) (2026)
- [Preference-Based Self-Distillation: Beyond KL Matching via Reward Regularization](https://mlsanity.com/paper/2605.05040/) (2026)
- [SimCT: Recovering Lost Supervision for Cross-Tokenizer On-Policy Distillation](https://mlsanity.com/paper/2605.07711/) (2026)
- [UCOB: Learning to Utilize and Evolve Agentic Skills via Credit-Aware On-Policy Bidirectional Self-Distillation](https://mlsanity.com/paper/2606.29502/) (2026)
- [DOPD: Dual On-policy Distillation](https://mlsanity.com/paper/2606.30626/) (2026)

## Abstract (arXiv)

On-policy distillation (OPD) is increasingly used in LLM post-training because it can leverage a teacher model to provide dense supervision on student rollouts. The standard implementation, however, usually reduces distribution matching to a sampled-token log-ratio, which can make the learning signal fragile on long rollouts whose prefixes drift away from the teacher's typical support. We revisit this formulation from both theoretical and implementation perspectives. Theoretically, token-level OPD is biased relative to sequence-level reverse-KL minimization, but admits a substantially tighter worst-case variance bound; a controlled synthetic study further shows that stronger future-reward coupling increases gradient variance and destabilizes training. Empirically, we identify three failure modes of sampled-token OPD: imbalanced token-level supervision, unreliable teacher guidance on student-generated prefixes, and tokenizer or special-token mismatch. These findings motivate teacher top-K local support matching, a truncated reverse-KL objective that compares teacher and student distributions over a teacher-supported token set at each prefix, together with top-p rollout sampling and special-token masking. Across single-task reasoning and multi-task benchmarks spanning agentic and reasoning settings, this objective improves optimization stability and yields a +19.8% performance gain over standard sampled-token OPD baselines, providing a practical recipe for more stable on-policy distillation.