Steering the Teacher: Improving On-Policy Self-Distillation for Thinking Models

Self-distillation is a promising recipe for self-improvement in language models. In this setting, a model can serve as its own teacher when given privileged information, such as a solution to a math problem. This seems especially appealing for thinking models, which can use test-time reasoning to absorb the privileged information. Surprisingly, we show that privileged self-distillation degrades thinking models on long reasoning traces: across five Qwen3 and OLMo thinking models evaluated on AIME24, AIME25, and HMMT25, privileged-context distillation causes a relative drop of up to 17% in avg@16 accuracy. The degradation scales with the amount of privileged context withheld from the student and is most pronounced at long rollout budgets, where thinking models otherwise obtain their largest gains. This failure mode is not specific to self-distillation: on-policy distillation (OPD) improves thinking models, but privileged OPD reverses these gains. Our diagnostics link this failure mode to how privileged teacher context reshapes learning at high-entropy forking positions, where multiple continuations remain plausible and may lead to different reasoning paths. Privileged context lowers fork rates in thinking-model rollouts but not in instruction-model rollouts. This leads to an interesting dichotomy, where privileged context can help instruction-tuned models but hurts stronger thinking models. The effect is visible when the student begins a self-correction branch, where privileged OPD penalizes sampled reconsideration tokens that vanilla OPD supports. Thinking models trained with a privileged teacher produce fewer verification, backtracking, and hedging markers, even after length normalization. These findings indicate that self-distillation for strong thinking models requires attention to token-level signal, especially around correction and reasoning steps.

On-policy self-distillation (OPSD) improves reasoning by training a model on its own trajectories with dense token-level supervision from a privileged copy conditioned on a reference solution. Existing methods typically use a single teacher distribution conditioned on the complete reference. We identify a limitation of this formulation: a reference is only one realization of the reasoning process. Although it provides evidence about the answer, it also encodes an ordering, phrasing, and solution path. Full-reference conditioning can therefore produce correct targets that depend excessively on information unavailable to the student at inference. We show that replacing one valid reference with another, while holding the problem and student state fixed, can substantially alter the teacher distribution, a phenomenon we call reference-induced target instability. To address this instability, we introduce Monte Carlo Privileged Distillation (MCPD), which models privileged context as a distribution over partial reference views and distills the marginal teacher distribution. MCPD evaluates the teacher under multiple views and averages the resulting next-token distributions. We show that this probability-space average is the exact target induced by minimizing the expected teacher-to-student KL divergence over privileged views. Across mathematical and scientific reasoning benchmarks, we show that MCPD produces more reference-consistent supervision and consistently improves over full-reference OPSD.

On-policy distillation (OPD) trains a student model by having it generate trajectories, then matching its next-token predictions with an external teacher's next-token predictions. This provides dense, token-level supervision to the student. On-policy self-distillation (OPSD) eliminates the need for the external teacher. Specifically, a second frozen copy of the student model, now given the ground truth in its context, serves as the teacher. The student model only receives the problem and learns to mimic the privileged teacher model, while the teacher remains frozen throughout training. Previous work showed that freezing the teacher is useful for training stability, but we argue that this can prevent the teacher from incorporating the improvements learned by the student during training. Our primary contribution is to address this limitation with a recursive framework built around two complementary components. First, we let the privileged teacher co-evolve with the student so that revision learned in one round can guide the next, a process we refer to as Dynamic Co-Evolution (DCE). Second, because stronger revision can also make responses too verbose and self-critical, we additionally train on shorter, verified rewrites of the model's own on-policy responses. We call this complementary objective Self-Refined Concise Learning (SRCL). Overall, our comprehensive evaluations show that DCE+SRCL outperforms OPSD across multiple model scales and four competition-level mathematics benchmarks. Specifically, on Qwen3-8B, DCE+SRCL reaches 65.97% Average@12, outperforming OPSD by 35.62 percentage points while reducing mean output length by 7.80% relative to DCE alone.