Distilling Physical Priors into Streaming World Models
Authors: Liangliang Zhao, Junying Wang, Danni Yang, Yifan Chang, Bin Fu, Yu Qiao, Bowen Zhou, Yihao Liu
Abstract
Streaming world models predict future visual states online while maintaining physically coherent dynamics over long horizons. However, their rollouts often violate basic physical constraints. A common approach distills pretrained bidirectional DiTs into few-step causal generators. However, this paradigm suffers from two fundamental limitations: generic bidirectional teachers acquire limited physical priors from visually oriented pretraining, and the limited priors suffer further loss during bidirectional-to-causal distillation. We present PhyS, a three-stage framework for distilling physical priors into streaming world models. To acquire physical priors from real-world interactions, we construct PhyS-120K, a dataset of 120K real-world physical-interaction videos spanning rigid-body dynamics, soft-body deformation, fluid phenomena, and phase transitions. Each video is annotated with structured descriptions of object properties and causal state transitions. Physics-aware supervised fine-tuning injects the physical priors into a bidirectional 14B DiT teacher, which we then distill into a lightweight 1.3B causal DiT for few-step autoregressive streaming generation. Finally, we use online reinforcement learning to incentivize the distilled model to generate physically plausible rollouts and further propose Temporal Credit Routing (TCR) to address temporal credit assignment. TCR evaluates physical consistency over overlapping temporal windows and routes the resulting group-relative advantages to temporally aligned denoising actions. On PhysicsIQ, PhyS improves the Wan2.1-14B teacher by 18.2% and the Self Forcing, Rolling Forcing, and Causal Forcing by 23.7%, 14.8%, and 31.4%, respectively. Results also improve the physics-aware video benchmarks VideoPhy, VideoPhy2, and PhyGenBench. The dataset, code, and more sample videos are available on our Project Page.
World simulators can provide safe and scalable environments for training Physical AI systems before real-world deployment. Large video generation models are emerging as a promising basis for such simulators because they can generate diverse and realistic visual futures. However, using them as world simulators requires physically faithful video continuations, namely, generated videos that preserve the physical state implied by the conditioning input, and evolve in ways consistent with basic physical principles. We propose PhyWorld, a video generation world model designed to produce temporally coherent and physically faithful scene continuations through two-stage post-training. In the first stage, we improve video-to-video continuation with flow matching fine-tuning, encouraging stable visual attributes and coherent motion dynamics across frames. In the second stage, we align generated dynamics with physical principles using Direct Preference Optimization (DPO) over physics preference pairs, guiding the model toward outputs with higher physical plausibility. To evaluate PhyWorld, we use both standard video-quality benchmarks and a dedicated physical-faithfulness benchmark with per-law scoring. Experiments show that PhyWorld improves video consistency, achieving an average score of 0.769 on VBench compared with 0.756 or below for state-of-the-art baselines. PhyWorld also improves physical plausibility, reaching an average score of 3.09 on our physical-faithfulness benchmark compared with 2.99 for the strongest baseline. These results suggest that post-training large video generation models with continuation and physics-preference signals can make them more effective world simulators for Physical AI.
Interactive control for video generation is moving from coarse prompts toward fine-grained, physically meaningful manipulation of dynamic scenes. Yet existing controllable methods either require the full control schedule before generation starts, or use pixel-space signals that dictate object positions rather than physical dynamics. To address these limitations, we propose PhysStream, an autoregressive model for physics-grounded image-to-video synthesis that incorporates structured scene memory---positional maps and object tracking maps derived online from previously generated frames---and supports fine-grained motion control via sparse velocity-increment signals that encode physical quantities, letting the model learn the underlying dynamics. We train our model in two stages: a bidirectional model is first finetuned with motion-control conditioning, then a causal autoregressive model is trained with additional structured scene memory, further improving physical consistency. PhysStream enables interactive, mid-generation control over multi-object tabletop rigid-body scenes---a capability not supported by prior methods---reducing motion distribution distance (FVMD) by 33% and trajectory error by 12% over the strongest baselines on synthetic benchmarks, and is preferred by human evaluators in over 85% of in-the-wild comparisons. Please check our website for more details: https://czzzzh.github.io/PhysStream
Modern video diffusion models excel at appearance synthesis but still struggle with physical consistency: objects drift, collisions lack realistic rebound, and material responses seldom match their underlying properties. We present PhyCo, a framework that introduces continuous, interpretable, and physically grounded control into video generation. Our approach integrates three key components: (i) a large-scale dataset of over 100K photorealistic simulation videos where friction, restitution, deformation, and force are systematically varied across diverse scenarios; (ii) physics-supervised fine-tuning of a pretrained diffusion model using a ControlNet conditioned on pixel-aligned physical property maps; and (iii) VLM-guided reward optimization, where a fine-tuned vision-language model evaluates generated videos with targeted physics queries and provides differentiable feedback. This combination enables a generative model to produce physically consistent and controllable outputs through variations in physical attributes-without any simulator or geometry reconstruction at inference. On the Physics-IQ benchmark, PhyCo significantly improves physical realism over strong baselines, and human studies confirm clearer and more faithful control over physical attributes. Our results demonstrate a scalable path toward physically consistent, controllable generative video models that generalize beyond synthetic training environments.