Do We Really Need KL Divergence for On-Policy Distillation of Large Language Models?

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.

On-Policy Distillation (OPD) has emerged as a dominant post-training paradigm for large language models, especially for reasoning domains. However, OPD remains unstable in practice due to the high gradient variance of its single-sample Monte Carlo estimator, and recipes for stable training are still immature. We propose vOPD (On-Policy Distillation with a control variate baseline), which casts OPD as policy-gradient RL and stabilizes it by introducing a control variate baseline-canonically a value function -- from the RL literature. We show that the OPD value function admits a closed form as the per-token negative reverse KL divergence between the student and the teacher, available directly from the already-computed forward pass with no additional critic or inference. Existing stabilization methods either compute the full token-level reverse KL over the entire vocabulary, adding significant overhead, or restrict it to a top-k support, biasing the objective. vOPD instead preserves the lightweight single-sample estimator, subtracting the value function as a detached baseline to keep the gradient unbiased while reducing variance. Furthermore, we show that a top-k approximation of the baseline further lowers cost without compromising performance. Across mathematical and scientific reasoning benchmarks, vOPD consistently outperforms vanilla OPD and matches the most expensive full-vocabulary baseline, offering an efficient stabilization of On-Policy Distillation through principled RL variance reduction.

On-policy distillation (OPD) learns from teacher feedback on student-generated responses and has shown promise in reducing forgetting relative to supervised fine-tuning (SFT). However, its benefits and fragility remain incompletely understood. We study sequential distillation from multiple teachers, where the student minimizes its average divergence from the teachers. Forward Kullback--Leibler (KL) divergence yields a weighted arithmetic mixture, while reverse KL yields a normalized weighted geometric aggregate. We develop algorithms that learn these targets under off-policy and on-policy feedback, respectively, establishing logarithmic regret bounds in the tabular setting and extending the analysis to function approximation. By analyzing these aggregation targets, we identify mechanisms that help explain both the benefits and fragility of OPD. Relative to forward KL, reverse KL can better retain a confident expert's preferences under uninformative feedback, but is more sensitive to teachers that assign very low probabilities to correct responses. Its token-level conditionals also reveal a dependence on continuation distributions that can favor incorrect prefixes over long horizons.