arXiv AI By Qiyong Zhong, Mao Zheng, Mingyang Song, Xin Lin, Jie Sun, Houcheng Jiang, Xiang Wang, Junfeng Fang

SOD: Step-wise On-policy Distillation for Small Language Model Agents

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SOD: Step-wise On-policy Distillation for Small Language Model Agents proposes a new framework that adaptively reweights distillation strength at each reasoning step based on step-level divergence. This approach mitigates cascading errors in tool-integrated reasoning by attenuating misleading teacher signals in high-divergence regions while preserving dense guidance where student and teacher align. Experiments on math, science, and code benchmarks show up to 20.86% improvement over the second-best baseline, with a 0.6B student scoring 26.13% on AIME 2025.

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