ActionOPD: Distilling Decisions, Not Tokens

On-policy distillation (OPD) trains a student model on its self-generated trajectories with dense token-level teacher feedback. However, naive OPD may suffer from teacher unanchoring, where the student's reasoning trajectory drifts far from the teacher, causing the teacher to be queried on states it would hardly visit and thus provide unreliable supervision. We propose Interactive-Policy Distillation (IPD), which applies adaptive teacher intervention to the student rollout. Under a bidirectional propose-and-verify state machine, the student and teacher alternately exchange their roles as proposer and verifier, and collaboratively generate mixed-source trajectories. Then different supervisions are applied according to the source of each token. This bidirectional propose-and-verify mechanism and the source-split loss make IPD not only a more performant distillation method, but also a unified bridge between on-policy and off-policy paradigms. To make the interleaved dual-model rollouts more efficient, we also design a dedicated fused inference engine that co-hosts both models in one serving instance with separate KV caches and instantiates the state machine model to distribute, collect, and process requests. On math reasoning tasks and across multiple teacher-student model pairs, student models trained with IPD not only outperform those trained with OPD, but also demonstrate higher data efficiency. Specifically, when distilling Qwen3-30B-A3B into Qwen3-1.7B-Base, IPD brings a +3.28 mean@8 and a +3.28 best@8 benchmark-averaged accuracy improvement compared with OPD. Besides, IPD only consumes about 1/4 of the training examples and steps to outperform OPD trained on the whole training dataset for one epoch. We also investigate the impact of different loss variants and takeover / handback configurations, and demonstrate the robustness of IPD on different training data.

On-policy distillation (OPD) is a promising approach for training language agents, providing dense teacher supervision on student-generated trajectories. However, in multi-turn interaction, an incorrect action changes the states the student encounters later, so errors compound across turns. In preliminary experiments across three Qwen3 models (8B to 235B), we find that more than half of the failed rollouts contain a pivotal mistake, an action that moves the agent farther from completing the task, and this mistake typically occurs early. These pivotal mistakes often remain recoverable: guiding the model for only a few turns after the pivotal turn can restore task success. We therefore propose PivotOPD, an on-policy distillation framework that jointly trains the student to prevent pivotal mistakes and to recover from the states they create. At each pivotal mistake, a teacher model provides a gold action and then names a recovery action at each of the next few turns. Preventive distillation uses the gold action with reverse KL to steer the student away from the pivotal mistake, while recovery distillation uses the recovery actions with forward KL to transfer recovery behaviors that the student rarely samples. Against 13 baselines on ALFWorld, WebShop, and Search-based QA, PivotOPD achieves the strongest average performance for both Qwen3-1.7B and Qwen3-8B students, improving over the strongest baseline on ALFWorld by +5.5% with the 1.7B student. The gains also transfer to another model family on the software engineering domain, where PivotOPD raises the resolve rate of a Nemotron-3.5 student on SWE-Bench Verified by +3.2%. Project page: https://research.nvidia.com/labs/lpr/pivotopd/

On-policy distillation (OPD) trains agents on their own trajectories using supervision from a stronger teacher. We uncover a counterintuitive phenomenon in multi-turn agentic tasks: a smaller, initially weaker student can substantially outperform its teacher during training, only to regress as distillation continues. We term this phenomenon distillation overshoot. Through decision- and task-level analyses, we trace overshoot to two competing effects of OPD: repairing weak student decisions and eroding successful student choices that the teacher disfavors. Early in training, repair outpaces erosion, allowing the student to combine the teacher's corrections with its own strengths and surpass the teacher. As training continues, erosion overtakes repair, causing these gains to vanish. Motivated by this finding, we propose Success-Preserving On-Policy Distillation (SPOD), which selectively masks conflicting teacher supervision on successful student choices and introduces a soft probability floor to counteract their erosion, while retaining teacher guidance elsewhere. SPOD requires only binary episode success and model probabilities already available during OPD. Across two model families and three agentic benchmarks, SPOD consistently outperforms ordinary OPD and evaluated variants, improving final success by up to 15.2 percentage points and surpassing the teacher by up to 20.0 points. Moreover, SPOD's final checkpoints outperform even ordinary OPD's best intermediate checkpoints in all six settings, demonstrating that beyond-teacher gains can be not only preserved but further extended. Code: https://github.com/Jike338/SPOD