# Step Rejection Fine-Tuning: A Practical Distillation Recipe

arXiv: https://arxiv.org/abs/2605.10674 · HTML: https://mlsanity.com/paper/2605.10674/

## Key facts

- Cited by 3 papers in the map (data through 14 Oct 2026).
- Placed in Reinforcement learning for LLM agents, one of 16 directions in LLM agents and tool use.
- Builds on 15 of its 17 references that are in the map.
- First posted on arXiv 11 May 2026.

## Placed in

- LLM agents and tool use / [Reinforcement learning for LLM agents](https://mlsanity.com/agents/reinforcement-learning-for-llm-agents/)

## Builds on (most cited first, 15 of 15)

- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [A Survey on Large Language Model based Autonomous Agents](https://mlsanity.com/paper/2308.11432/) (2023)
- [SWE-agent: Agent-Computer Interfaces Enable Automated Software Engineering](https://mlsanity.com/paper/2405.15793/) (2024)
- [The Rise and Potential of Large Language Model Based Agents: A Survey](https://mlsanity.com/paper/2309.07864/) (2023)
- [Qwen2.5-Coder Technical Report](https://mlsanity.com/paper/2409.12186/) (2024)
- [Hindsight Experience Replay](https://mlsanity.com/paper/1707.01495/) (2017)
- [Scaling Relationship on Learning Mathematical Reasoning with Large Language Models](https://mlsanity.com/paper/2308.01825/) (2023)
- [Training Software Engineering Agents and Verifiers with SWE-Gym](https://mlsanity.com/paper/2412.21139/) (2024)
- [SWE-smith: Scaling Data for Software Engineering Agents](https://mlsanity.com/paper/2504.21798/) (2025)
- [R2E-Gym: Procedural Environments and Hybrid Verifiers for Scaling Open-Weights SWE Agents](https://mlsanity.com/paper/2504.07164/) (2025)
- [SWEET-RL: Training Multi-Turn LLM Agents on Collaborative Reasoning Tasks](https://mlsanity.com/paper/2503.15478/) (2025)
- [Learn-by-interact: A Data-Centric Framework for Self-Adaptive Agents in Realistic Environments](https://mlsanity.com/paper/2501.10893/) (2025)
- [Training LLM-Based Agents with Synthetic Self-Reflected Trajectories and Partial Masking](https://mlsanity.com/paper/2505.20023/) (2025)

## Built on by (most cited first, 3 of 3)

- [FailForge: Distilling Procedural Competence from Persistent Failures into Code Agents](https://mlsanity.com/paper/2608.08570/) (2026)
- [ROSS: Relearning from Self-Generated Rollouts through Selective Supervision](https://mlsanity.com/paper/2609.35954/) (2026)
- [Learning More by Training Less: Uncertainty-Guided Progressive Contraction for Efficient Reasoning Post-Training](https://mlsanity.com/paper/2610.12933/) (2026)

## Abstract (arXiv)

Rejection Fine-Tuning (RFT) is a standard method for training LLM agents, where unsuccessful trajectories are discarded from the training set. In the context of SWE-bench tasks, this corresponds to filtering out runs where the submitted patch does not pass the tests. However, this approach discards unresolved trajectories, even though they form a large portion of all trajectories for hard tasks and even then may be partially correct. In this work, we propose Step Rejection Fine-Tuning (SRFT) - a practical way to leverage these unresolved trajectories. For this, we employ a critic LLM to assess the correctness of each step in a trajectory. Consequently, during training, we mask the loss for erroneous steps while retaining them in the context window. This way we ensure the model learns to recover from errors without reproducing them. Evaluation on SWE-bench Verified shows that while RFT improves the resolution rate by 2.4% by excluding unresolved trajectories, SRFT improves it by 3.7% by filtering them instead of discarding completely, reaching the total resolution rate of 32.2%.