# ActionOPD: Distilling Decisions, Not Tokens

arXiv: https://arxiv.org/abs/2610.19820 · HTML: https://mlsanity.com/paper/2610.19820/

## 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 30 of its 37 references that are in the map.
- First posted on arXiv 14 Oct 2026.

## Placed in

- LLM agents and tool use / [Reinforcement learning for LLM agents](https://mlsanity.com/agents/reinforcement-learning-for-llm-agents/)
- 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 30)

- [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)
- [HybridFlow: A Flexible and Efficient RLHF Framework](https://mlsanity.com/paper/2409.19256/) (2024)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [Sequence-Level Knowledge Distillation](https://mlsanity.com/paper/1606.07947/) (2016)
- [τ2-Bench: Evaluating Conversational Agents in a Dual-Control Environment](https://mlsanity.com/paper/2506.07982/) (2025)
- [Group-in-Group Policy Optimization for LLM Agent Training](https://mlsanity.com/paper/2505.10978/) (2025)
- [Self-Distilled Reasoner: On-Policy Self-Distillation for Large Language Models](https://mlsanity.com/paper/2601.18734/) (2026)
- [AppWorld: A Controllable World of Apps and People for Benchmarking Interactive Coding Agents](https://mlsanity.com/paper/2407.18901/) (2024)
- [Reinforcement Learning via Self-Distillation](https://mlsanity.com/paper/2601.20802/) (2026)
- [ToolSandbox: A Stateful, Conversational, Interactive Evaluation Benchmark for LLM Tool Use Capabilities](https://mlsanity.com/paper/2408.04682/) (2024)
- [Revisiting On-Policy Distillation: Empirical Failure Modes and Simple Fixes](https://mlsanity.com/paper/2603.25562/) (2026)
- [Privileged Information Distillation for Language Models](https://mlsanity.com/paper/2602.04942/) (2026)
- [Agent World Model: Infinity Synthetic Environments for Agentic Reinforcement Learning](https://mlsanity.com/paper/2602.10090/) (2026)
- [EnvScaler: Scaling Tool-Interactive Environments for LLM Agent via Programmatic Synthesis](https://mlsanity.com/paper/2601.05808/) (2026)
- [Black-Box On-Policy Distillation of Large Language Models](https://mlsanity.com/paper/2511.10643/) (2025)
- [On-Policy Distillation with Curriculum Turn-level Guidance for Multi-turn Agents](https://mlsanity.com/paper/2606.15912/) (2026)
- [Student-Centered Distillation Narrows the Agentic Gap Between Small and Large LLMs](https://mlsanity.com/paper/2509.14257/) (2025)
- [Rubric-based On-policy Distillation](https://mlsanity.com/paper/2605.07396/) (2026)
- [OVD: On-policy Verbal Distillation](https://mlsanity.com/paper/2601.21968/) (2026)
- [ATOD: Annealed Turn-Aware On-Policy Distillation for Multi-Turn Agentic Tasks](https://mlsanity.com/paper/2606.27814/) (2026)
- [Breaking the Tokenizer Barrier: On-Policy Distillation across Model Families](https://mlsanity.com/paper/2606.09456/) (2026)
- [Cross-Tokenizer On-Policy Distillation via Byte-Prefix Marginalization](https://mlsanity.com/paper/2607.22334/) (2026)
- [OmniOPD: Logit-Free On-Policy Distillation via Speculative Verification](https://mlsanity.com/paper/2606.01476/) (2026)
- [Beyond Syntax: Action Semantics Learning for App Agents](https://mlsanity.com/paper/2506.17697/) (2025)
- [MENTOR: Reinforcement Learning via Flexible Teacher-Optimized Rewards for Tool-Use Distillation](https://mlsanity.com/paper/2510.18383/) (2025)

## Abstract (arXiv)

Distilling capable language-model agents into smaller models requires aligning the student's behavior with the teacher's. This raises a fundamental question: at which states and at what granularity should this alignment be performed? Offline imitation provides dense but token-specific supervision and can suffer from state-distribution mismatch. Token-level on-policy distillation (OPD) addresses this mismatch but typically requires teacher token probabilities and compatible tokenization. We argue that semantic actions provide a natural unit of supervision for agent distillation. We introduce ActionOPD, an action-level on-policy distillation method motivated by maximizing expected teacher-action likelihood at student-encountered states. At each such state, ActionOPD samples actions from both the student and a black-box teacher, rewarding student actions according to their semantic agreement with the sampled teacher actions. Through policy optimization, ActionOPD aligns the student's action-level behavior with the teacher's decisions without requiring reproduction of teacher-written reasoning or access to teacher token probabilities. Training Qwen3-4B and Qwen3-8B with two teachers on diverse, curated tool-use tasks yields average gains of 3.3-6.9 percentage points across four out-of-distribution benchmarks. ActionOPD scales favorably with student size and teacher capability, without requiring the teacher and student to share a model family or tokenizer. On τ2-bench, ActionOPD achieves competitive performance against offline distillation and token-level OPD. We further explore Self-ActionOPD with a same-model teacher and privileged context. These results establish ActionOPD as a promising approach to agent distillation.