# Interactive-Policy Distillation with Bidirectional Propose-and-Verify

arXiv: https://arxiv.org/abs/2609.36546 · HTML: https://mlsanity.com/paper/2609.36546/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in On-policy and self-distillation for LLMs, one of 12 directions in Knowledge distillation.
- Builds on 34 of its 39 references that are in the map.
- First posted on arXiv 29 Sep 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 34)

- [Distilling the Knowledge in a Neural Network](https://mlsanity.com/paper/1503.02531/) (2015)
- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [Efficient Memory Management for Large Language Model Serving with PagedAttention](https://mlsanity.com/paper/2309.06180/) (2023)
- [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)
- [Fast Inference from Transformers via Speculative Decoding](https://mlsanity.com/paper/2211.17192/) (2022)
- [DeepSeek-V4: Towards Highly Efficient Million-Token Context Intelligence](https://mlsanity.com/paper/2606.19348/) (2026)
- [Accelerating Large Language Model Decoding with Speculative Sampling](https://mlsanity.com/paper/2302.01318/) (2023)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [Scheduled Sampling for Sequence Prediction with Recurrent Neural Networks](https://mlsanity.com/paper/1506.03099/) (2015)
- [Sequence-Level Knowledge Distillation](https://mlsanity.com/paper/1606.07947/) (2016)
- [Distilling Step-by-Step! Outperforming Larger Language Models with Less Training Data and Smaller Model Sizes](https://mlsanity.com/paper/2305.02301/) (2023)
- [Sequence Level Training with Recurrent Neural Networks](https://mlsanity.com/paper/1511.06732/) (2015)
- [Improved Knowledge Distillation via Teacher Assistant](https://mlsanity.com/paper/1902.03393/) (2019)
- [Large Language Models Are Reasoning Teachers](https://mlsanity.com/paper/2212.10071/) (2022)
- [Rethinking On-Policy Distillation of Large Language Models: Phenomenology, Mechanism, and Recipe](https://mlsanity.com/paper/2604.13016/) (2026)
- [Teaching Small Language Models to Reason](https://mlsanity.com/paper/2212.08410/) (2022)
- [DeepMath-103K: A Large-Scale, Challenging, Decontaminated, and Verifiable Mathematical Dataset for Advancing Reasoning](https://mlsanity.com/paper/2504.11456/) (2025)
- [HG-DAgger: Interactive Imitation Learning with Human Experts](https://mlsanity.com/paper/1810.02890/) (2018)
- [MiMo-V2-Flash Technical Report](https://mlsanity.com/paper/2601.02780/) (2026)
- [Entropy-Aware On-Policy Distillation of Language Models](https://mlsanity.com/paper/2603.07079/) (2026)
- [DistiLLM: Towards Streamlined Distillation for Large Language Models](https://mlsanity.com/paper/2402.03898/) (2024)
- [Revisiting On-Policy Distillation: Empirical Failure Modes and Simple Fixes](https://mlsanity.com/paper/2603.25562/) (2026)
- [Small Models Struggle to Learn from Strong Reasoners](https://mlsanity.com/paper/2502.12143/) (2025)
- [Why Exposure Bias Matters: An Imitation Learning Perspective of Error Accumulation in Language Generation](https://mlsanity.com/paper/2204.01171/) (2022)
- [EnsembleDAgger: A Bayesian Approach to Safe Imitation Learning](https://mlsanity.com/paper/1807.08364/) (2018)
- [Speculative Knowledge Distillation: Bridging the Teacher-Student Gap Through Interleaved Sampling](https://mlsanity.com/paper/2410.11325/) (2024)
- [DistiLLM-2: A Contrastive Approach Boosts the Distillation of LLMs](https://mlsanity.com/paper/2503.07067/) (2025)
- [MOPD: Multi-Teacher On-Policy Distillation for Capability Integration in LLM Post-Training](https://mlsanity.com/paper/2606.30406/) (2026)
- [JustRL: Scaling a 1.5B LLM with a Simple RL Recipe](https://mlsanity.com/paper/2512.16649/) (2025)

## Abstract (arXiv)

On-policy distillation (OPD) trains a student model on its self-generated trajectories with dense token-level teacher feedback. However, naive OPD may suffer from teacher unanchoring, where the student's reasoning trajectory drifts far from the teacher, causing the teacher to be queried on states it would hardly visit and thus provide unreliable supervision. We propose Interactive-Policy Distillation (IPD), which applies adaptive teacher intervention to the student rollout. Under a bidirectional propose-and-verify state machine, the student and teacher alternately exchange their roles as proposer and verifier, and collaboratively generate mixed-source trajectories. Then different supervisions are applied according to the source of each token. This bidirectional propose-and-verify mechanism and the source-split loss make IPD not only a more performant distillation method, but also a unified bridge between on-policy and off-policy paradigms. To make the interleaved dual-model rollouts more efficient, we also design a dedicated fused inference engine that co-hosts both models in one serving instance with separate KV caches and instantiates the state machine model to distribute, collect, and process requests. On math reasoning tasks and across multiple teacher-student model pairs, student models trained with IPD not only outperform those trained with OPD, but also demonstrate higher data efficiency. Specifically, when distilling Qwen3-30B-A3B into Qwen3-1.7B-Base, IPD brings a +3.28 mean@8 and a +3.28 best@8 benchmark-averaged accuracy improvement compared with OPD. Besides, IPD only consumes about 1/4 of the training examples and steps to outperform OPD trained on the whole training dataset for one epoch. We also investigate the impact of different loss variants and takeover / handback configurations, and demonstrate the robustness of IPD on different training data.