Zone of Proximal Policy Optimization: Teacher in Prompts, Not Gradients

Knowledge distillation transfers a teacher's competence to a small student but is brittle in the small-student regime: forcing the student to imitate logits from a much larger teacher hurts generalization on benchmark families beyond the training corpus. Reinforcement learning (RL) avoids logit imitation by training on the student's own rollouts. However, on questions where every rollout fails, yielding zero advantage and being silently discarded, injecting a stronger teacher's response into the policy gradient breaks the on-policy assumption and induces drift. We introduce Zone of Proximal Policy Optimization (ZPPO), inspired by Vygotsky's zone of proximal development. ZPPO keeps the teacher inside the prompt rather than the policy gradient. On hard questions, where the student's mean rollout accuracy is below half, ZPPO constructs two reformulated prompts. A Binary Candidate-included Question (BCQ) pairs one correct teacher response with one incorrect student response as anonymized candidates the student uses as references. A Negative Candidate-included Question (NCQ) aggregates the student's wrong rollouts into a single prompt to surface their shared failure modes. A prompt replay buffer keeps each hard question eligible for re-sampling until it either graduates, the student's mean rollout accuracy on it reaches half or more, or is FIFO-evicted under finite capacity, amplifying BCQ and NCQ inside the student's current zone of proximal development. We post-train Qwen3.5 students at four scales (0.8B-9B) as vision-language models with a 27B teacher and evaluate them on a 31-benchmark suite (16 VLM, 10 LLM, 5 Video); ZPPO outperforms off/on-policy distillation and GRPO, with the largest gains at the smallest scale.