# Model What Matters: Decision-Guided Selective World Modeling for Language Agents

arXiv: https://arxiv.org/abs/2610.19642 · HTML: https://mlsanity.com/paper/2610.19642/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in World models for language agents, one of 11 directions in World models.
- Builds on 20 of its 28 references that are in the map.
- First posted on arXiv 14 Oct 2026.

## Placed in

- World models / [World models for language agents](https://mlsanity.com/wm/world-models-for-language-agents/)
- LLM agents and tool use / [Reinforcement learning for LLM agents](https://mlsanity.com/agents/reinforcement-learning-for-llm-agents/)

## Builds on (most cited first, 20 of 20)

- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [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)
- [HotpotQA: A Dataset for Diverse, Explainable Multi-hop Question Answering](https://mlsanity.com/paper/1809.09600/) (2018)
- [TriviaQA: A Large Scale Distantly Supervised Challenge Dataset for Reading Comprehension](https://mlsanity.com/paper/1705.03551/) (2017)
- [Billion-scale similarity search with GPUs](https://mlsanity.com/paper/1702.08734/) (2017)
- [World Models](https://mlsanity.com/paper/1803.10122/) (2018)
- [Constructing A Multi-hop QA Dataset for Comprehensive Evaluation of Reasoning Steps](https://mlsanity.com/paper/2011.01060/) (2020)
- [Text Embeddings by Weakly-Supervised Contrastive Pre-training](https://mlsanity.com/paper/2212.03533/) (2022)
- [Measuring and Narrowing the Compositionality Gap in Language Models](https://mlsanity.com/paper/2210.03350/) (2022)
- [MuSiQue: Multihop Questions via Single-hop Question Composition](https://mlsanity.com/paper/2108.00573/) (2021)
- [Reasoning with Language Model is Planning with World Model](https://mlsanity.com/paper/2305.14992/) (2023)
- [Group-in-Group Policy Optimization for LLM Agent Training](https://mlsanity.com/paper/2505.10978/) (2025)
- [Direct Language Model Alignment from Online AI Feedback](https://mlsanity.com/paper/2402.04792/) (2024)
- [Agent Learning via Early Experience](https://mlsanity.com/paper/2510.08558/) (2025)
- [ECHO: Terminal Agents Learn World Models for Free](https://mlsanity.com/paper/2605.24517/) (2026)
- [Policy and World Modeling Co-Training for Language Agents](https://mlsanity.com/paper/2606.02388/) (2026)
- [Direct Alignment of Language Models via Quality-Aware Self-Refinement](https://mlsanity.com/paper/2405.21040/) (2024)

## Abstract (arXiv)

Reinforcement learning provides a direct mechanism for optimizing task objectives in large language model-driven agents, but task rewards are typically sparse trajectory-level signals that only evaluate task success, without directly supervising action-conditioned environment transitions, leaving the model with limited explicit understanding of action consequences and environment dynamics. Recent work introduces auxiliary supervision through policy and world modeling co-training, yet typically treats complete environmental observations uniformly as world modeling targets, overlooking the varying decision relevance of observation content. We propose DGS-WM (Decision-Guided Selective World Modeling), a decision-guided policy-world modeling co-training approach for language agents. DGS-WM employs a Decision-Guided Observation Selection component that filters observation units with decision value as world modeling targets based on their support for subsequent policy responses, and a Confidence-Adaptive Weighting component that adaptively adjusts supervision strength according to the model's prediction confidence on selected targets. Together, these components form a decision-aware auxiliary world modeling loss, jointly optimized with the RL loss on the same policy model. Across multiple benchmarks covering single-hop/multi-hop question answering and interactive web tasks, DGS-WM achieves consistent improvements under different model scales and RL algorithms, demonstrating more stable and effective performance compared to full-observation world modeling methods.