When Not to Imitate: Boundary-Aware Skill Memory for Reliable Tool-Use LLM Agents

Skills have emerged as a practical and effective approach for enhancing LLM agents at inference time through structured packages of knowledge. However, existing evaluations largely measure whether skills improve aggregated task success, leaving a more fundamental question underexplored: When do skills help, why do they work, and where do they fail? Through controlled experiments across various benchmarks, agent harnesses and LLMs, we isolate the effects of representation, outcome annotation, retrieval difficulty, and cross-framework robustness of skills. To further answer this question, we design a contrastive study that combines controlled quantitative experiments with paired trajectory analysis. We normalize 8,135 trial records from controlled experiments and retain 238 valid unique labels from 240 open-coded records. We consolidate these observations into a taxonomy of three high-level categories and twelve skill-use modes: skills work when noisy trajectories become procedural anchors that stabilize execution. Skills improve over Workflow Memory by 6.06 points in matched comparisons. Procedural anchoring accounts for 65.7% of skill cases, versus 4.5% for explicit knowledge injection, showing that skills stabilize action rather than inject missing facts. Retrieval is a separate bottleneck: as pools grow from 5 to 100, actual-use precision falls from 29.6% to 3.3%. Confusable distractors impair offline identification, yet downstream success remains stable; exact ground-truth invocation is neither sufficient nor necessary. Skills fail under brittle assumptions, incompatible contexts, or insufficient adaptation. These findings move evaluation beyond aggregate success rates and guide reliable self-evolving agents.

Large Language Model (LLM) agents increasingly rely on domain-specific skills, yet manually authoring such skills does not scale, and skills generated purely from parametric knowledge often miss critical operational pitfalls. We introduce Trace2Skill, a framework that consolidates broad execution trajectories in parallel into a unified skill directory through inductive reasoning over agent experience. Trace2Skill supports both deepening existing human-written skills and creating useful skills from weak LLM-generated drafts. Experiments demonstrate the effectiveness of Trace2Skill across diverse domains, including office workflows, math reasoning, and vision QA. Importantly, the evolved skills are not merely memorized artifacts of the trajectories used to create them: they often transfer across model scales, across model families, and to out-of-distribution settings. For example, skills evolved from Qwen3.5-35B trajectories improve a Qwen3.5-122B agent by up to $57.65$ percentage points on WikiTableQuestions. Further analyses show that Trace2Skill outperforms sequential skill editing and ReasoningBank-style retrieval memories, compresses recurring failures and workarounds into standard operating procedures (SoPs), and yields portable skills that can be reused without parameter updates or test-time retrieval.

Skill-based prompting has become a practical mechanism for improving LLM agents, yet existing methods often treat skills as summaries of the agent's own experience or of successful demonstrations. This creates a mismatch for weaker student agents. A failed trajectory may not reveal the missing knowledge or strategy, while a teacher trajectory may be too implicit to internalize. We propose SKILL-KD, a contrastive skill distillation framework that treats skills as an explicit distillation medium between agents of different capabilities. Given a student failure and the teacher trajectory on the same task, SKILL-KD distills their actionable discrepancy into a textual skill patch, evaluates it by re-running the student, and iteratively refines it when the student still fails. To prevent skill drift from repeated local updates, SKILL-KD maintains trace-linked edit histories and performs Drift-Aware Skill Consolidation to decide whether each patch is added, merged, or skipped. Across five agent benchmarks and two student settings, SKILL-KD consistently improves frozen student agents over fixed-model adaptation baselines.