Preference-Based Self-Distillation: Beyond KL Matching via Reward Regularization

On-policy distillation is an efficient alternative to reinforcement learning, offering dense token-level training signals. However, its reliance on a stronger external teacher has driven recent work on on-policy self-distillation, where the same model serves as both teacher and student under different prompt contexts. Yet, existing self-distillation methods largely reduce learning to KL matching toward the context-augmented teacher model. This approach often suffers from training instability and can degrade reasoning performance over time. Moreover, self-distillation from the same model with prompt augmentation lacks the exploratory diversity provided by a genuine external teacher. To address these limitations, we move beyond fixed-teacher KL matching and propose Preference-Based Self-Distillation (PBSD), which revisits on-policy self-distillation through a reward-regularized perspective. Instead of directly matching the teacher distribution, we derive a reward-regularized objective whose analytic optimum is a reward-reweighted teacher distribution, yielding a target policy provably superior to the original teacher under this objective. Practically, PBSD optimizes preference gaps between teacher and student samples while maintaining on-policy student sampling. We support this framework with a statistical analysis of the induced preference-learning problem, formally establishing when on policy self-distillation is preferable to learning from an external teacher in our setting. Experiments on mathematical reasoning and tool-use benchmarks across multiple model scales demonstrate that PBSD consistently achieves the strongest average performance among comparable baselines, showing improved training stability over prior self-distillation baselines while preserving token efficiency.