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This paper introduces Observation-Calibrated Self-Distillation (OCSD), a novel training technique for LLM agents that resolves confounding issues in token-level reward attribution during reinforcement learning. By contrasting full replay views with observation-ablated versions, OCSD isolates the specific impact of future environment observations to improve updates at high-uncertainty steps without sacrificing trajectory-level guidance. Experimental results on complex agent environments like ALFWorld and WebShop demonstrate consistent performance gains over existing baselines using Qwen3 models.
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Agentic Reinforcement Learning with Observation-Calibrated Self-Distillation

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arXiv:2608.04788v1 Announce Type: cross Abstract: Large language model agents are commonly trained through reinforcement learning with sparse trajectory-level rewards, which offer limited guidance on how strongly individual tokens should be updated. On-Policy Self-Distillation (OPSD) addresses this by re-scoring generated tokens under a privileged replay view to obtain dense, token-level supervision. However, we identify a confounding issue: the resulting support may reflect both the privileged information contained in the replay view and score shifts induced by the replay scaffold, making it difficult to attribute the support specifically to that information. This issue is especially pronounced when future environment observations serve as privileged information, since replaying them requires reconstructing an extended scaffold that itself perturbs token scores. To resolve this confounding, we propose Observation-Calibrated Self-Distillation (OCSD), which contrasts two structurally matched replay views, Full and Observation-Ablated, differing only in whether the actual future observation is present, to derive an observation residual that discounts score changes shared by the replay scaffold. OCSD then applies this residual to modulate token-level GRPO updates at high-uncertainty steps, while preserving the trajectory-level update direction. Experiments on ALFWorld, WebShop, and Search-QA across three Qwen3 model scales show that OCSD consistently outperforms strong baselines. Diagnostic analyses further confirm that the calibrated residual aligns better with local environment feedback. Our code is publicly available at https://github.com/yiy1x/OCSD.

Abstract:Large language model agents are commonly trained through reinforcement learning with sparse trajectory-level rewards, which offer limited guidance on how strongly individual tokens should be updated. On-Policy Self-Distillation (OPSD) addresses this by re-scoring generated tokens under a privileged replay view to obtain dense, token-level supervision. However, we identify a confounding issue: the resulting support may reflect both the privileged information contained in the replay view and score shifts induced by the replay scaffold, making it difficult to attribute the support specifically to that information. This issue is especially pronounced when future environment observations serve as privileged information, since replaying them requires reconstructing an extended scaffold that itself perturbs token scores. To resolve this confounding, we propose Observation-Calibrated Self-Distillation (OCSD), which contrasts two structurally matched replay views, Full and Observation-Ablated, differing only in whether the actual future observation is present, to derive an observation residual that discounts score changes shared by the replay scaffold. OCSD then applies this residual to modulate token-level GRPO updates at high-uncertainty steps, while preserving the trajectory-level update direction. Experiments on ALFWorld, WebShop, and Search-QA across three Qwen3 model scales show that OCSD consistently outperforms strong baselines. Diagnostic analyses further confirm that the calibrated residual aligns better with local environment feedback. Our code is publicly available at this https URL.

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

arXiv:2608.04788 [cs.LG]

(or arXiv:2608.04788v1 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2608.04788 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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