# LLM Value Functions for Credit Assignment in Agentic RL

arXiv: https://arxiv.org/abs/2610.15840 · HTML: https://mlsanity.com/paper/2610.15840/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Reinforcement learning for LLM agents, one of 16 directions in LLM agents and tool use.
- Builds on 41 of its 57 references that are in the map.
- First posted on arXiv 11 Oct 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, 30 of 41)

- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [Distilling the Knowledge in a Neural Network](https://mlsanity.com/paper/1503.02531/) (2015)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Let's Verify Step by Step](https://mlsanity.com/paper/2305.20050/) (2023)
- [SWE-bench: Can Language Models Resolve Real-World GitHub Issues?](https://mlsanity.com/paper/2310.06770/) (2023)
- [DAPO: An Open-Source LLM Reinforcement Learning System at Scale](https://mlsanity.com/paper/2503.14476/) (2025)
- [High-Dimensional Continuous Control Using Generalized Advantage Estimation](https://mlsanity.com/paper/1506.02438/) (2015)
- [SWE-agent: Agent-Computer Interfaces Enable Automated Software Engineering](https://mlsanity.com/paper/2405.15793/) (2024)
- [Understanding R1-Zero-Like Training: A Critical Perspective](https://mlsanity.com/paper/2503.20783/) (2025)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [GLM-5: from Vibe Coding to Agentic Engineering](https://mlsanity.com/paper/2602.15763/) (2026)
- [Group-in-Group Policy Optimization for LLM Agent Training](https://mlsanity.com/paper/2505.10978/) (2025)
- [AppWorld: A Controllable World of Apps and People for Benchmarking Interactive Coding Agents](https://mlsanity.com/paper/2407.18901/) (2024)
- [BabyAI: A Platform to Study the Sample Efficiency of Grounded Language Learning](https://mlsanity.com/paper/1810.08272/) (2018)
- [ArCHer: Training Language Model Agents via Hierarchical Multi-Turn RL](https://mlsanity.com/paper/2402.19446/) (2024)
- [VinePPO: Refining Credit Assignment in RL Training of LLMs](https://mlsanity.com/paper/2410.01679/) (2024)
- [R2E-Gym: Procedural Environments and Hybrid Verifiers for Scaling Open-Weights SWE Agents](https://mlsanity.com/paper/2504.07164/) (2025)
- [Self-Distilled RLVR](https://mlsanity.com/paper/2604.03128/) (2026)
- [SWEET-RL: Training Multi-Turn LLM Agents on Collaborative Reasoning Tasks](https://mlsanity.com/paper/2503.15478/) (2025)
- [Vision Language Models are In-Context Value Learners](https://mlsanity.com/paper/2411.04549/) (2024)
- [AgentPRM: Process Reward Models for LLM Agents via Step-Wise Promise and Progress](https://mlsanity.com/paper/2511.08325/) (2025)
- [SPA-RL: Reinforcing LLM Agents via Stepwise Progress Attribution](https://mlsanity.com/paper/2505.20732/) (2025)
- [Hindsight Credit Assignment for Long-Horizon LLM Agents](https://mlsanity.com/paper/2603.08754/) (2026)
- [Asymmetric On-Policy Distillation: Bridging Exploitation and Imitation at the Token Level](https://mlsanity.com/paper/2605.06387/) (2026)
- [SALT: Step-level Advantage Assignment for Long-horizon Agents via Trajectory Graph](https://mlsanity.com/paper/2510.20022/) (2025)
- [Attention Illuminates LLM Reasoning: The Preplan-and-Anchor Rhythm Enables Fine-Grained Policy Optimization](https://mlsanity.com/paper/2510.13554/) (2025)
- [FIPO: Eliciting Deep Reasoning with Future-KL Influenced Policy Optimization](https://mlsanity.com/paper/2603.19835/) (2026)
- [SOD: Step-wise On-policy Distillation for Small Language Model Agents](https://mlsanity.com/paper/2605.07725/) (2026)

## Abstract (arXiv)

Reinforcement learning (RL) for large language model (LLM) agents remains challenging in long-horizon tasks with sparse outcome rewards, where assigning credit to individual actions is difficult. Methods such as GRPO assign the same trajectory-level advantage to all actions, while critic-based methods require learning an additional value function that can be costly and unstable. We introduce LLM Value Function RL (LVRL), which uses the pretrained knowledge and in-context learning ability of an LLM to estimate policy-aware state values without finetuning a separate critic. LVRL conditions the value model on group context and calibrates its predictions using known values at the initial and terminal states, enabling step-level credit assignment from estimated value differences. We further extend this idea to learning from an expert policy through on-policy distillation (OPD), introducing LLM Value Function OPD (LVOPD), which focuses teacher supervision on actions associated with decreases in estimated value. We evaluate our approach across diverse agentic benchmarks: AppWorld, BabyAI, and SWE-bench Verified. Across policy scales (4B to 32B), LVRL consistently and substantially outperforms both GRPO and PPO. On AppWorld and SWE-bench Verified, LVRL yields absolute improvements of up to 13.6 and 8.6 percentage points over GRPO. Notably, on tasks requiring extended exploration like BabyAI, LVRL bridges the gap from total failure to 75.0% success. Furthermore, LVOPD yields consistent improvements over standard distillation baselines on AppWorld. Finally, Monte-Carlo analysis confirms that our frozen critic accurately identifies semantic pitfalls and recoveries, proving that LVRL extracts robust, policy-aware step-level credit from sparse terminal outcomes.