Every Coin Has Two Sides: On the Dual Nature of Generalization in On-Policy Distillation of Large Language Models

On-policy distillation (OPD) transfers teacher capabilities by supervising trajectories sampled from the student's own policy, yet its generalization behavior remains poorly understood, as most studies evaluate OPD on a single domain and on benchmarks close to the training data. We present a controlled study that varies one generalization factor at a time, from in-domain distribution shifts to cross-domain transfer and the multi-teacher setting.

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• llms
• efficiency
• benchmarks