Memory systems are becoming a core component of LLM agents, but constructing and maintaining memory remains expensive because it relies on repeated calls to large proprietary language models. This cost creates a major barrier to deploying memory-enhanced agents at scale. In this paper, we present Pseudo Self-Distillation (PSD), a framework that enables small language models (SLMs) to construct hierarchical memory representations by distilling behavior from a strong black-box oracle through a multi-stage training pipeline. Standard distillation methods require access to teacher logits or hidden states, which closed models do not expose. Unlike conventional self-distillation settings, where supervision is derived from a model's own predictions, sampled rollouts, or aggregated outputs, PSD enables a single-model distillation setup while channeling external oracle knowledge through the prompt. PSD uses a single small model in two roles: a teacher that sees a privileged prompt containing the oracle's answer as reference context, and a student that sees only the task prompt. The student learns to reproduce the teacher's output distribution, absorbing oracle-guided behavior into its own weights without accessing the oracle's internals. On LoCoMo, PSD-trained Qwen3-0.6B, 1.7B, and 4B match or exceed GPT-4.1-mini on downstream retrieval at a fraction of the deployment cost, with off-policy PSD achieving the strongest results across most conditions. We further show that this memory-construction capability transfers out-of-distribution to LongMemEval, despite the students being trained exclusively on LoCoMo with no exposure to LongMemEval data.
Memory systems have shown promise for improving agent performance, but their potential remains largely unexplored for small language models, which struggle to generate sufficient successful trajectories on their own. We propose Agent Memory Distillation (AMD), a training-free framework that transfers structured knowledge from a large teacher agent to a small student agent through hierarchical memory. AMD constructs three complementary memory types from successful teacher trajectories: Workflow memory encodes task-level strategies, Subtask memory provides concrete behavioral examples at an intermediate granularity, and Function memory captures per-function calling conventions and common pitfalls. Workflow and Subtask memories are injected proactively at the start of each task, while Function memory is retrieved reactively upon tool-calling errors. We evaluate AMD on three tool-use benchmarks using four student models (4B-8B parameters) with GPT-5-mini as the teacher, achieving average accuracy gains of 27.2%p, 11.2%p, and 3.4%p on AppWorld, BFCL V3, and ToolSandbox, while consistently outperforming existing memory-based baselines. Further analysis shows that Subtask memory contributes the largest gains, teacher effectiveness depends on both teacher capability and student compatibility, and 4B-sized students benefit most from AMD.
On-policy self-distillation (OPSD) has emerged as a practical method for training large language models (LLMs) to reason, where a single model acts as both the teacher and the student with different levels of information access. However, recent studies have found that the teacher's dense token-level supervision, conditioned on privileged information, can lead to overfitting to in-domain patterns, suppress exploration, and hurt cross-domain generalization, while also introducing a more fundamental issue: privileged information leakage, where the student encodes answer-dependent shortcuts that are unavailable at test time. We introduce DemoPSD, a novel framework that resolves such problems through the idea of selective adoption of teacher guidance. Instead of fitting the full teacher distribution, DemoPSD steers the student toward a reverse-KL barycenter target, a weighted geometric combination of the teacher and student distributions, that naturally balances learning from the teacher with preserving the student's own reasoning capacity. We measure the difference between their distributions and use such a discrepancy to adaptively control the blending at each token position. We provably show that DemoPSD achieves (1)leakage attenuation, i.e., effective mitigation of privileged information leakage; and (2)exploration preservation, i.e., preservation of exploration capacity under dense token-level distillation. Extensive experiments on SciKnowEval across four scientific fields show that DemoPSD outperforms both GRPO and SDPO while maintaining higher training entropy and robustly generalizing to out-of-distribution GPQA benchmarks.
Large Language Model (LLM)-based agents can solve complex procedural tasks by interacting with environments over multiple turns, but this ability typically depends on large models, long contexts, and repeated inference calls. This makes advanced memory-augmented agents difficult to deploy on resource-constrained devices. We introduce DuoMem, a dual-space distillation framework that transfers procedural problem-solving ability from a large teacher model to compact student models. DuoMem distils in two complementary spaces: (1)context-space distillation, which replaces student-generated memories with higher-quality teacher-generated procedural memories prepended to the student's input, and (2)parameter-space distillation, which fine-tunes lightweight LoRA adapters on successful teacher trajectories. Evaluated on ALFWorld, a challenging embodied decision-making benchmark, DuoMem boosts a 4B-parameter model from 4.3% to 77.9% task success rate, closing most of the gap to a 72B teacher model (87.1%), while adding fewer than 10M trainable parameters and only a few megabytes of pre-computed teacher memories. Moreover, the DuoMem-enhanced 4B model completes tasks over 3x faster than the 72B teacher in wall-clock time, making it viable for real-time edge deployment, which would be challenging for the teacher.Extensive ablations across eight models spanning 2B-72B parameters reveal that both distillation axes contribute complementary