On-policy distillation (OPD) enables effective capability transfer between language models, yet the mechanisms underlying its failures are not fully understood. Across code generation and mathematical reasoning, OPD with larger-scale teachers exhibits early loss plateaus, with an average final loss reduction of 25.1% after 200 updates, compared with 96.2% for self-RL teachers, obtained by further reinforcement learning (RL) training of the initial student. To understand this difference, we analyze OPD as an idealized continuous-time dynamical system in the small-learning-rate limit. Our training-log diagnostics associate these plateaus with an early decline in a gradient-based learning-signal proxy while substantial loss remains; these measurements do not establish why the underlying gradient weakens. We further prove a local recovery guarantee for teachers sufficiently close to the initial student in a shared parameterization under regularity conditions, offering a conditional explanation for the success of self-RL teachers in our experiments. Across runs with and without loss plateaus, we observe small relative parameter changes (0.025-0.098%) and high similarity between the student's representations before and after OPD (linear CKA >0.98 across layers). These observations suggest that limited representation adaptation may contribute to learning-signal collapse, a hypothesis that remains to be tested. Code is available at https://github.com/leizhao7/opd-learning-signals.
On-policy distillation (OPD) and on-policy self-distillation (OPSD) have emerged as promising post-training methods for large language models, offering dense token-level supervision on trajectories sampled from the model's own policy. However, existing results on their effectiveness remain mixed: while OP(S)D has shown promise in system prompt and knowledge internalization, recent studies also report instability and degradation. In this work, we present a comprehensive empirical study of when OPD and OPSD work, when they fail, and why. We find that OPD on mathematical reasoning is highly sensitive to teacher choice and loss formulation, whereas OPSD fails in our tested settings due to test-time absence of instance-specific privileged information (PI). In contrast, OPSD is effective when PI represents a shared latent rule, such as a system prompt or alignment preference. We identify three failure mechanisms: (1) distribution mismatch between teacher and student caused by conditioning on student-generated prefixes, (2) optimization instability from biased TopK reverse-KL gradients, and (3) an OPSD-specific limitation where the student learns a PI-free policy that aggregates PI-conditioned teachers, which is insufficient when PI is instance-specific. We further show that stop-gradient TopK objectives, RLVR-adapted teachers, and SFT-stabilized students mitigate these failures.
Siqi Zhu, Xuyan Ye, Hongyu Lu +2
1UIUC · 2Renmin University of China · †Work done during an internship at UIUC. +1
On-policy distillation (OPD) offers dense token-level supervision as an alternative to the sparse outcome-level advantages of reinforcement learning with verifiable rewards (RLVR). However, the teacher scores student-generated trajectories that are inherently off-policy for it, so the reliability of its supervision, and hence the source of the student's improvement, remains unclear. We quantitatively analyze teacher supervision during OPD training and find substantial noise whose prevalence increases with teacher scale. Surprisingly, the student policy is insensitive to such noise, converging to comparable performance regardless of whether noisy supervision is retained or removed. Does OPD distill at all? By analyzing what drives its gains, we find that learning concentrates on low log-probability tokens, and using a single fixed negative advantage matches the performance of teacher-provided ones. This suggests that OPD works largely by suppressing low log-probability tokens, which requires no teacher. These findings motivate On-Policy Self-Adaptation (OPSA), a supervision-free method using entropy-adaptive negative advantages. It assigns stronger learning signals to high-entropy positions, suppressing tail tokens, and evenly redistributing probability mass among head tokens. Compared with the base \texttt{Qwen3-1.7B}, OPSA improves Avg@32 by 35.41 points on AIME24, corresponding to a 263% relative gain, and more than doubles Pass@32 across all three benchmarks. It also outperforms OPD by 16.77 points in Avg@32 on AIME24. Extensive experiments and analyses across model families and tasks further demonstrate its effectiveness and generalizability.
Yi Ding, Ruqi Zhang
Department of Computer Science, Purdue University, USA
On-policy distillation (OPD) trains a student on its own generated responses using dense, token-level supervision from a stronger teacher. Vanilla OPD treats all teacher signals equally, assuming that the teacher's supervision is equally important for every token. However, teacher signals at different tokens may have very different effects on the student's performance: some correct important reasoning errors, while others have little effect on the final answer. Motivated by this observation, we introduce Dr. OPD (OPD Done Right), which defines the optimal weighted OPD to maximize the student's performance. We formulate Dr. OPD as a bilevel optimization problem in which the student learns from weighted teacher supervision, while the weights are selected to maximize the expected reward of the resulting student. To solve Dr. OPD, we develop an efficient iterative solver that updates the token weights and student policy alternatively. At each round, it updates weights in closed form and then takes one gradient step on the resulting weighted OPD objective. Under regularity conditions, we show that this weighted update achieves a higher expected reward than a vanilla OPD update. Empirically, across strong-to-weak and same-size distillation on math and code, Dr. OPD consistently outperforms all evaluated baselines. In particular, in the strong-to-weak distillation setting, Dr. OPD improves average math performance by 9.7 points over vanilla OPD, and enables the smaller student to surpass its larger teacher.