Which Skill to Distill? SGUID: Selecting a Compact Skill Bank for Model-Skill Co-Evolution

Yuhan Liu, Xiyao Ma, Zhongkai Sun, Xu Han, Chengyuan Ma +2

Skills, reusable procedural guidance added at inference, can substantially improve LLM downstream performance (Li et al., 2026). Prior work retrieves skills from a bank by semantic relevance, then uses them as inference-time patches or for model distillation. The individual utility of each skill, however, is largely neglected. We first show that, in on-policy distillation where skill-conditioned policies serve as teachers, fewer than 25% of retrieved skills provide useful distillation signals. We then propose SGUID, a method for selecting a compact subset of skills for distillation. SGUID retains a skill only if it consistently yields effective learning signals during training. The selected skills are then distilled to produce a better model. Our results show that not all skills are worth distilling. Across four models from the Olmo and Qwen families, distilling 6 selected skills matches or exceeds full-bank distillation in mean avg@12 on three of the four models, and on all four after a second round that distills 3 newly selected skills, while the full banks are up to 11x larger. Importantly, SGUID supports stable model-skill co-evolution: after a distillation round, a new…