On-Policy Distillation

Source: https://thinkingmachines.ai/blog/on-policy-distillation Author: Thinking Machines Lab Date: 2025-10-28

Summary

Technical post on on-policy distillation — training a smaller “student” model by having it learn from a larger “teacher” model’s live generations (not cached data). This approach maintains distribution alignment between teacher and student.

Key Claims

  • Standard distillation problem: teacher generates a dataset offline, student learns from it. Problem: student’s distribution diverges from teacher’s, causing distribution mismatch.
  • On-policy solution: student generates responses, teacher evaluates and corrects. Student always learns from its own distribution.
  • Key benefit: the student learns to fix its own errors, not generic teacher demonstrations.
  • Result: on-policy distillation produces smaller models that outperform offline-distilled equivalents on reasoning tasks.
  • Connection to RL: on-policy distillation is similar to GRPO/PPO — the student is essentially doing RL with the teacher as the reward model.

Concepts