Reward-Aligned Reweighting for On-Policy Distillation

Haofeng Xu, Junwei Su, Lansong Diao, Wenchao Zhou, Chuan Wu

On-policy distillation (OPD) trains a student language model with dense feedback from a stronger teacher on student-generated trajectories. Yet standard OPD weights token-level distillation terms uniformly, implicitly treating local teacher preference as a proxy for correction utility. A decision's task value, however, depends on how the student completes the subsequent reasoning. This mismatch can cause imitation to suppress viable student strategies or reinforce paths the student cannot reliably execute. Verified trajectory outcomes provide complementary evidence about continuation quality, but do not directly identify the utility of individual decisions. We introduce Reward-Aligned Reweighting for On-Policy Distillation (R$^{2}$-OPD), which uses outcome agreement and the magnitude of teacher--student disagreement to continuously reallocate teacher supervision. It gives reward-aligned corrections greater relative influence while retaining dense feedback, moving beyond uniform imitation and hard filtering. Our analysis formalizes the mismatch between local teacher preference and student continuation value and establishes sufficient conditions for reallocation to improve…