On-Policy Distillation
On-Policy Distillation combines the strengths of SFT and RL:
- the student generates trajectories themselves (on-policy — solves the distribution mismatch problem);
- a stronger teacher provides a word-by-word distribution at each step (dense signal instead of sparse reward at the end).
~10x fewer training steps than pure RL.
The teacher evaluates not “right/wrong”, but the complete distribution “with what probability each token”.
Requirement: a sufficiently realistic environment for the student to explore in the deployment distribution.
Related: OPSD Self-Distillation, GRPO, Three Stages of Post-Training