# GFD-OPD: Guidance-Folded On-Policy Distillation of Diffusion Models Across Scales

arXiv: https://arxiv.org/abs/2609.39692 · HTML: https://mlsanity.com/paper/2609.39692/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Discrete and text diffusion, one of 14 directions in Diffusion models.
- Builds on 15 of its 17 references that are in the map.
- First posted on arXiv 30 Sep 2026.

## Placed in

- Diffusion models / [Discrete and text diffusion](https://mlsanity.com/diffusion/discrete-and-text-diffusion/)

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

- [Photorealistic Text-to-Image Diffusion Models with Deep Language Understanding](https://mlsanity.com/paper/2205.11487/) (2022)
- [Scaling Rectified Flow Transformers for High-Resolution Image Synthesis](https://mlsanity.com/paper/2403.03206/) (2024)
- [ImageReward: Learning and Evaluating Human Preferences for Text-to-Image Generation](https://mlsanity.com/paper/2304.05977/) (2023)
- [Pick-a-Pic: An Open Dataset of User Preferences for Text-to-Image Generation](https://mlsanity.com/paper/2305.01569/) (2023)
- [GenEval: An Object-Focused Framework for Evaluating Text-to-Image Alignment](https://mlsanity.com/paper/2310.11513/) (2023)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [Flow-GRPO: Training Flow Matching Models via Online RL](https://mlsanity.com/paper/2505.05470/) (2025)
- [GLM-5: from Vibe Coding to Agentic Engineering](https://mlsanity.com/paper/2602.15763/) (2026)
- [Learning beyond Teacher: Generalized On-Policy Distillation with Reward Extrapolation](https://mlsanity.com/paper/2602.12125/) (2026)
- [MOPD: Multi-Teacher On-Policy Distillation for Capability Integration in LLM Post-Training](https://mlsanity.com/paper/2606.30406/) (2026)
- [DiffusionOPD: A Unified Perspective of On-Policy Distillation in Diffusion Models](https://mlsanity.com/paper/2605.15055/) (2026)
- [Flow-OPD: On-Policy Distillation for Flow Matching Models](https://mlsanity.com/paper/2605.08063/) (2026)
- [Escaping the KL Agreement Trap in On-Policy Distillation](https://mlsanity.com/paper/2606.09471/) (2026)
- [Rethinking Classifier-Free Guidance in On-Policy Diffusion Distillation](https://mlsanity.com/paper/2607.24731/) (2026)
- [STEP-OPD: Rethinking Output Targets and Internal Dynamics in On-Policy Distillation for Diffusion Models](https://mlsanity.com/paper/2608.04887/) (2026)

## Abstract (arXiv)

On-policy distillation (OPD) has demonstrated two important capabilities in language models: compressing large teachers into smaller students and merging expert models into a single model. Existing diffusion OPD, however, mostly focus on the latter, with teachers and students sharing the same backbone and scale. We investigate large-to-small diffusion opd from large teachers to a small student and find that the standard recipe fails. To find the underlying cause, we propose Fixed-State KL, an effective and fair way to measure the distribution gap between student and teacher during OPD training for diffusion models. We are the first to clarify why large-to-small OPD is challenging for diffusion models: a smaller student struggles to perfectly match the distribution of a larger teacher, while classifier-free guidance can accumulate and amplify the distributional discrepancies between the student's conditional and unconditional branches and those of the teacher. To solve this problem, we propose GFD-OPD, a simple yet effective method that reduces the student-teacher gap while avoiding the error amplification of the CFG composition. Across numerous experiments, GFD outperforms previous baselines in both training efficiency and final performance, achieving state-of-the-art results on all benchmarks.