Tail-Aware Top-$k$ On-Policy Distillation

On-policy distillation (OPD) is becoming an important component of large language model (LLM) post-training for transferring the reasoning capability of a strong teacher LLM to a weaker student LLM. OPD trains the student by minimizing the reverse KL divergence between the teacher and the student via rollouts generated by the student's policy. However, estimating the gradient of the reverse KL divergence in OPD remains a challenge. Using only the sampled token from the student-generated rollout is computationally cheap but provides limited distributional supervision, which will degrade accuracy. In addition, using the full vocabulary provides complete distributional supervision but is computationally expensive. Therefore, recent works propose Top-$k$ OPD (TK-OPD) that use selected top-$k$ tokens, which provides richer distributional supervision than sampled-token estimation at substantially lower computational cost than full-vocabulary estimation. Unfortunately, using only the selected top-$k$ tokens induces bias, leading to accuracy degradation, as the probability mass outside the selected top-$k$ tokens is discarded. To address the bias of TK-OPD, we propose Tail-Corrected Top-$k$ On-Policy Distillation (TT-OPD). It preserves the advantages of TK-OPD, including rich distributional supervision and low computational cost, while providing an unbiased estimator of the gradient of the reverse KL divergence. The key insight of TT-OPD is to use not only the selected top-$k$ tokens, but also the sampled token from the student-generated rollout, thereby recovering the discarded probability mass in expectation, avoiding the bias. Experimental results demonstrate that TT-OPD significantly outperforms other tested OPD variants.

The core learning signal used in language model distillation is the standard Kullback-Leibler (KL) divergence between the student and teacher distributions. Traditional KL divergence tends to be dominated by the next tokens with the highest probabilities, i.e., the teacher's modes, thereby diminishing the influence of less probable yet potentially informative components of the output distribution. We propose a new tail-aware divergence that decouples the contribution of the teacher model's top-K predicted probabilities from that of lower-probability predictions, while maintaining the same computational profile as the KL Divergence. Our decoupled approach reduces the impact of the teacher modes and, consequently, increases the contribution of the tail of the distribution. Experimental results demonstrate that our modified distillation method yields competitive performance in both pre-training and supervised distillation of decoder models across various datasets. Furthermore, the distillation process is efficient and can be performed with a modest academic budget for large datasets, eliminating the need for industry-scale computing.

On-policy distillation (OPD) is increasingly used in LLM post-training because it can leverage a teacher model to provide dense supervision on student rollouts. The standard implementation, however, usually reduces distribution matching to a sampled-token log-ratio, which can make the learning signal fragile on long rollouts whose prefixes drift away from the teacher's typical support. We revisit this formulation from both theoretical and implementation perspectives. Theoretically, token-level OPD is biased relative to sequence-level reverse-KL minimization, but admits a substantially tighter worst-case variance bound; a controlled synthetic study further shows that stronger future-reward coupling increases gradient variance and destabilizes training. Empirically, we identify three failure modes of sampled-token OPD: imbalanced token-level supervision, unreliable teacher guidance on student-generated prefixes, and tokenizer or special-token mismatch. These findings motivate teacher top-K local support matching, a truncated reverse-KL objective that compares teacher and student distributions over a teacher-supported token set at each prefix, together with top-p rollout sampling and special-token masking. Across single-task reasoning and multi-task benchmarks spanning agentic and reasoning settings, this objective improves optimization stability and yields a +19.8% performance gain over standard sampled-token OPD baselines, providing a practical recipe for more stable on-policy distillation.