Your Teacher Can’t Help You Here: Combating Supervision Fidelity Decay in On-Policy Distillation

On-policy distillation transfers reasoning capabilities by training a student model on its own generated trajectories using token-level feedback from a teacher. However, we identify a critical bottleneck, Supervision Fidelity Decay (SFD): as student-generated prefixes lengthen, the teacher’s next-token distribution becomes less confident and less discriminative. Consequently, the teacher-dependent corrective signal in reverse-KL distillation weakens, causing student drift to compound across long reasoning chains. To mitigate SFD, we introduce Lookahead Group Reward (LGR). Building on the insight that next-step teacher confidence reflects the discriminative strength of future reverse-KL supervision, LGR evaluates the student’s top-K candidate tokens by the teacher confidence they induce at the subsequent step and assigns a group-normalized reward. To maintain computational efficiency, we further design an entropy-triggered tree-attention mechanism. Across six math and code benchmarks, LGR improves mean@8 by 2.57 points over OPD for a 7B student, with gains increasing in longer-generation and reaching 4.92 points on AIME-26 at 39k tokens.