Diagnosing and Mitigating Thinking Collapse in On-Policy Self-Distillation

On-policy self-distillation (OPSD) is an emerging LLM post-training paradigm in which the model serves as its own teacher: conditioned on privileged information such as a reference trace or hint, the same policy provides dense token-level supervision on its own rollouts. However, recent studies show that OPSD degrades complex reasoning by suppressing predictive uncertainty, which supports exploration and hypothesis revision. Our token-level analysis shows that this failure arises from applying a uniform direction of teacher supervision across tokens with different uncertainty levels: conformity to the privileged self-teacher suppresses exploration at high entropy, while deviation from the teacher degrades step accuracy at low entropy. Accordingly, we propose \textbf{Direction-Adaptive Self-Distillation} (\textbf{DASD}), which reframes privileged self-distillation from uniform teacher imitation into entropy-routed directional supervision: high-entropy tokens are pushed away from the privileged teacher to preserve exploration, while low-entropy tokens are pulled toward the teacher to stabilize step-level execution. Across six mathematical reasoning benchmarks, DASD achieves the best macro Avg@16 over strong RLVR and self-distillation baselines. Pass@$k$, reasoning-health, and generalization analyses show that these average gains come from preserving exploration without sacrificing step-level execution.

On-policy (Self-)Distillation (OPD / OPSD) has shown strong potential for post-training large language models (LLMs). However, existing methods still rely heavily on external supervision, including ground-truth signals, environmental feedback, or guidance from larger models, and therefore fall short of genuine "self"-distillation. In this study, we show that on-policy self-distillation can be achieved using only a model's own generations via internal consistency. We propose unsupervised on-policy self-distillation (U-OPSD). U-OPSD first samples multiple rollouts and constructs a pseudo solution by majority vote under a self-consistency threshold. It then conditions the model's distribution on the pseudo-solution and distills itself on the disagreeing completions, allowing the model to correct itself precisely where it is confidently wrong. Across diverse benchmarks, base models, and training settings, U-OPSD consistently improves over the base models and matches or surpasses supervised methods with ground truth (GT) such as OPSD and GRPO. On five mathematical reasoning benchmarks, i.e., AIME24, AIME25, HMMT25, MATH500, and AMC23, U-OPSD improves over the base model by 8.5% and 10.7% on Qwen3 non-thinking mode at 4B and 8B scales, and outperforms OPSD by 3.2% and 2.3% on average, respectively. In thinking mode, U-OPSD stays on par with OPSD, ahead by 0.9% at 4B and level at 8B and surpassing GRPO by 0.7% and 1.1%, respectively. Code is available at https://github.com/williamium3000/u-opsd.

Self-distillation is a promising recipe for self-improvement in language models. In this setting, a model can serve as its own teacher when given privileged information, such as a solution to a math problem. This seems especially appealing for thinking models, which can use test-time reasoning to absorb the privileged information. Surprisingly, we show that privileged self-distillation degrades thinking models on long reasoning traces: across five Qwen3 and OLMo thinking models evaluated on AIME24, AIME25, and HMMT25, privileged-context distillation causes a relative drop of up to 17% in avg@16 accuracy. The degradation scales with the amount of privileged context withheld from the student and is most pronounced at long rollout budgets, where thinking models otherwise obtain their largest gains. This failure mode is not specific to self-distillation: on-policy distillation (OPD) improves thinking models, but privileged OPD reverses these gains. Our diagnostics link this failure mode to how privileged teacher context reshapes learning at high-entropy forking positions, where multiple continuations remain plausible and may lead to different reasoning paths. Privileged context lowers fork rates in thinking-model rollouts but not in instruction-model rollouts. This leads to an interesting dichotomy, where privileged context can help instruction-tuned models but hurts stronger thinking models. The effect is visible when the student begins a self-correction branch, where privileged OPD penalizes sampled reconsideration tokens that vanilla OPD supports. Thinking models trained with a privileged teacher produce fewer verification, backtracking, and hedging markers, even after length normalization. These findings indicate that self-distillation for strong thinking models requires attention to token-level signal, especially around correction and reasoning steps.