Solving Without Stopping: On-Policy Distillation at Small Scale

On-policy distillation, where a student learns from a stronger teacher's feedback on its own outputs, is a common way to pass reasoning to smaller models. We analyze what it transfers at small scale, distilling Qwen3-8B into Qwen3 4B, 1.7B and 0.6B students, in thinking mode (reason at length, then end the reasoning and answer) and, for comparison, in non-thinking mode (no separate reasoning phase). Long reasoning needs two abilities, solving a problem and knowing when it is solved, and we find that distillation transfers the first, but in thinking mode not the second. Solving improves at every size, up to two ceilings, which we measure comprehensively across both modes and all student sizes: a student's single attempt never exceeds what it could already reach in many attempts before training, and the smaller the student, the further it stays below the teacher. Stopping is where the modes part. In non-thinking mode every student keeps stopping; in thinking mode students stop ending their reasoning early in training, and the smaller the student, the less of this ability survives: the teacher signals a stop almost only where a student already ends its reasoning, so distillation teaches no new stops; it only keeps the student's existing stops that land on a right answer, and a weak student has few such stops. The smallest students often reach the right value but do not commit to it: they either rarely mark it or mark it and write past it. Together, these results describe how small students behave under on-policy distillation, and a diagnostic that separates answer marking, correctness and stopping.