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This research addresses a critical instability in long-horizon tool-use agents where standard self-distillation amplifies both useful skills and harmful shortcuts. The proposed Sibling-Guided Credit Distillation (SGCD) method refines credit assignment by contrasting successful and failed sibling rollouts to reshape token advantages without requiring external oracles at deployment time. By improving performance on AppWorld and $\tau^3$-airline benchmarks, the work offers a more robust training signal for complex reasoning tasks involving API calls and multi-step planning.
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Keep Policy Gradient in Charge: Sibling-Guided Credit Distillation for Long-Horizon Tool-Use Agents

arXiv3 min read

arXiv:2606.12634v1 Announce Type: cross Abstract: Long-horizon tool-use reinforcement learning can learn from outcome verification, but its trajectory-level advantage is broadcast across many reasoning, API, and answer tokens. Self-distillation promises a denser signal by reusing a policy's own rollouts or a privileged teacher. We show, however, that direct token-level self-distillation can silently destroy tool use: it rehearses teacher behavior without knowing which actions the verifier rewards, so useful skills and harmful shortcuts are amplified together. We introduce Sibling-Guided Credit Distillation (SGCD), which uses distillation for credit assignment rather than as a competing actor loss. Dynamic sampling produces mixed successful and failed sibling rollouts; an external LLM summarizes their contrast into a training-only stepwise credit reference; dense teacher/student divergence drives credit reassignment; and bounded detached credit weights reshape GRPO token advantages. The deployed student sees no external LLM, sibling evidence, or oracle. Across AppWorld and $\tau^3$-airline, SGCD improves over matched GRPO comparators: AppWorld TGC $42.9 \to 45.6$ on test_normal and $24.7 \to 27.0$ on test_challenge, and $\tau^3$-airline pass@1 $0.583 \to 0.602$.

Abstract:Long-horizon tool-use reinforcement learning can learn from outcome verification, but its trajectory-level advantage is broadcast across many reasoning, API, and answer tokens. Self-distillation promises a denser signal by reusing a policy's own rollouts or a privileged teacher. We show, however, that direct token-level self-distillation can silently destroy tool use: it rehearses teacher behavior without knowing which actions the verifier rewards, so useful skills and harmful shortcuts are amplified together. We introduce Sibling-Guided Credit Distillation (SGCD), which uses distillation for credit assignment rather than as a competing actor loss. Dynamic sampling produces mixed successful and failed sibling rollouts; an external LLM summarizes their contrast into a training-only stepwise credit reference; dense teacher/student divergence drives credit reassignment; and bounded detached credit weights reshape GRPO token advantages. The deployed student sees no external LLM, sibling evidence, or oracle. Across AppWorld and $\tau^3$-airline, SGCD improves over matched GRPO comparators: AppWorld TGC $42.9 \to 45.6$ on test_normal and $24.7 \to 27.0$ on test_challenge, and $\tau^3$-airline pass@1 $0.583 \to 0.602$.

13 pages, 4 figures, 7 tables. Submitted to EMNLP 2026 Industry Track

Machine Learning (cs.LG); Artificial Intelligence (cs.AI); Computation and Language (cs.CL)

arXiv:2606.12634 [cs.LG]

(or arXiv:2606.12634v1 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2606.12634 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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Full text under the publisher's open licence · 277 words

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