SkillCycle: Co-Evolving Agent Policies and Skill Banks

Ling Li, Qiuyu Shen, Zheng Jiang, Qinwei Ma, Yuxuan Liu +1

Internalizing external skills changes a language agent's capabilities and, with them, the value of its remaining guidance: rules can become redundant, misleading, or insufficient for newly encountered decisions. This creates a coupled problem of learning from skills and adapting the skills that supervise further learning. We introduce SkillCycle, a framework for co-evolving agent policies and skill banks through a feedback loop between skill internalization and rule revision. Our central contribution is to give distillation feedback a second role: token-level contextual differences help locate rules for inspection, while interaction outcomes guide edits to their content and applicability. SkillCycle alternates between two phases: policy learning with a fixed skill bank and router, and rule revision with a frozen policy. Candidate edits undergo rule-level and whole-bank environment comparisons before they guide the next learning cycle. On WebShop, SkillCycle with a 3B model achieves a success rate of 74.74% and a score of 88.37 without inference-time skill inputs, representing relative improvements of 0.73% and 3.96% over the state-of-the-art (SOTA) model, respectively. In Cycle 3…