MENTOR: Reinforcement Learning via Flexible Teacher-Optimized Rewards for Tool-Use Distillation

Distilling LLM tool use into small language models with on-policy RL and set-based teacher-alignment rewards

EMNLP 2026

ChangSu Choi1,*, Hoyun Song2,1,*, Dongyeon Kim1, Minkyung Cho1, WooHyeon Jung1, Sunjin Park3, NohHyeob Bae3, Seona Yu3, KyungTae Lim1,†

1Korea Advanced Institute of Science and Technology (KAIST) 2Department of Artificial Intelligence, Dankook University 3LG CNS

*Equal contribution   †Corresponding author

Three bar charts comparing a large teacher (Qwen3-235B) with a small model (Qwen3-8B). (a) Using tools raises LLM accuracy from 80.5% to 88.9% but lowers SLM accuracy from 74.2% to 57.8%. (b) The SLM makes more tool calls per sample (1.24 vs. 0.83). (c) The LLM relies on multiply, divide and power, while the SLM favors simpler tools and has a large share of invalid calls.
Figure 1. Tool-use behavior of an LLM (Qwen3-235B) versus an SLM (Qwen3-8B). (a) Tools help the LLM (80.5% → 88.9%, +8.3 points) but hurt the SLM (74.2% → 57.8%, −16.4 points). (b) The SLM nevertheless calls tools more often: 1.24 vs. 0.83 calls per sample. (c) The two models choose tools differently: the LLM focuses on operations such as multiply, divide and power, while the SLM leans on simpler or redundant functions and produces many invalid tool calls. The gap is not a lack of tool use but ineffective tool use.

Abstract

Distilling the tool-use capabilities of large language models (LLMs) into small language models (SLMs) is essential for their practical application. The predominant approach, supervised fine-tuning (SFT), is an off-policy distillation method that suffers from poor out-of-domain (OOD) generalization because it rigidly aligns with static teacher trajectories. While reinforcement learning (RL) offers an alternative, the capacity limitations of SLMs pose a severe dilemma: sparse outcome rewards provide insufficient guidance, whereas strict trajectory matching imposes overly restrictive constraints. To bridge this capacity-driven gap, we propose MENTOR, an on-policy distillation framework that introduces a flexible yet process-aware reward structure. Instead of enforcing rigid replication, MENTOR uses the teacher’s reference to guide tool-use behavior, balancing behavioral alignment with downstream performance. Extensive experiments on controlled executable-tool benchmarks demonstrate that MENTOR improves OOD tool-use performance compared to SFT and strict RL baselines. Our findings suggest that within verifiable tool-use environments, flexible tool-use alignment offers a more effective approach than strict trajectory replication for developing adaptable small models.

Keywords Tool-use distillation Knowledge distillation On-policy distillation Small language models (SLMs) Tool-integrated reasoning (TIR) Reinforcement learning (GRPO) Reward design Function calling LLM agents Out-of-domain generalization

Method

MENTOR training loop: the teacher produces a reference trajectory of reasoning, tool-use and observation steps plus an answer; the student generates several rollouts; each rollout is scored by three reward functions (correctness Rc, teacher alignment Ra, tool validity Rv); the rewards go through GRPO group computation to produce advantages that update the student.
Figure 3. Overview of the MENTOR training framework. A trajectory consists of Reasoning (R), Tool-Use (T) and Observation (O) steps and a final Answer (A). Each student rollout is scored against the teacher’s reference trajectory by three reward functions. The first rollout uses the teacher’s tools in a different order and still receives all three rewards; a rollout with a failed tool call loses Rv, one using a different tool set loses Ra, and one that uses a different tool set and gives a wrong answer loses both Ra and Rc.

Small models trained with outcome-only rewards learn to avoid tools, while strict trajectory-matching rewards (as in ToolRL) make them call tools but steadily accumulate invalid calls. MENTOR (Model Enhancement by Non-rigid Teacher-Optimized Rewards) sits between these extremes: it uses the teacher’s trajectory as a reference for which tools to use, not as a sequence to copy.

  1. Teacher references. A teacher (Qwen3-235B-Thinking) solves each training question, producing a trajectory τ(t)=⟨(r1,t1,o1),…,(rLτ,tLτ,oLτ)⟩\tau^{(t)} = \langle (r_1, t_1, o_1), \ldots, (r_{L_\tau}, t_{L_\tau}, o_{L_\tau}) \rangle of reasoning, tool-use and observation steps and an answer y^(t)\hat{y}^{(t)}. Only trajectories whose answer matches the ground truth are kept.
  2. On-policy rollouts. The student generates a group of rollouts O(s)O^{(s)} for the same question, executing its Python tool calls in a sandbox.
  3. Composite reward. Each rollout is scored with R(O(s),O(t))=wcRc+waRa+wvRvR(O^{(s)}, O^{(t)}) = w_c R_c + w_a R_a + w_v R_v where Rc = 1 if the final answer matches the teacher’s answer; the teacher-alignment reward Ra = 1 if the student used exactly the same set of tools as the teacher, {t∣t∈τ(s)}={t∣t∈τ(t)}\{t \mid t \in \tau^{(s)}\} = \{t \mid t \in \tau^{(t)}\}, regardless of order or count; and the tool-validation reward Rv = 1 only if every tool call in the student’s trajectory executes without error.
  4. Policy update. The student is optimized with GRPO: rewards are normalized within each rollout group into advantages that update the student policy.

Training uses mathematical reasoning (AceReason-Math) as a controlled domain. Students are Qwen2.5 (1.5B, 7B) and Qwen3 (1.7B, 8B). Baselines are the vanilla model, SFT on teacher trajectories, outcome-based RL, and Strict RL (a re-implementation of ToolRL’s trajectory-matching reward) in the same RL framework. In-domain evaluation uses six math benchmarks (Math-Forge, Omni-MATH, AIME24, AIME25, AMC23, MinervaMath); out-of-domain evaluation uses tools unseen in training: the BFCL-v4 function-calling benchmark and three retrieval QA benchmarks (Bamboogle, 2WikiMultiHopQA, HotpotQA). An alignment score (AS) based on the Jensen-Shannon divergence measures how close a model’s tool-usage distribution is to the teacher’s.

Main Results

  • Best in-domain accuracy at every scale. MENTOR reaches overall math accuracy of 48.26% on Qwen3-8B (SFT: 41.47%, Strict RL: 45.77%, vanilla: 39.12%; the 235B teacher: 52.06%), and 9.89% on Qwen2.5-1.5B (SFT: 3.17%, Strict RL: 6.95%).
  • Better out-of-domain tool use. On retrieval QA with unseen tools, MENTOR scores 20.73 EM on Qwen2.5-7B (SFT: 14.57, Strict RL: 19.10) and 35.44 on Qwen3-8B (SFT: 34.14, Strict RL: 34.66). On BFCL-v4 it reaches 43.39 on Qwen3-8B (SFT: 42.16, Strict RL: 42.95).
  • SFT barely transfers. SFT gains little out of domain (e.g., BFCL-v4 overall on Qwen2.5-7B: 26.38 → 26.50), while MENTOR reaches 33.52.
  • Alignment tracks performance. In the reward ablation, the full MENTOR reward (Setting 6) gives the best Math (27.95), BFCL (31.52), RAG (21.08) and alignment score (88.63); across settings, performance and alignment score correlate with Pearson’s r = 0.85.
  • Fewer invalid calls. Configurations that include the tool-validation reward Rv drive the invalid tool-call rate to near zero during training, while those without it stay unstable.
Table 1. Overall scores: in-domain Math accuracy (%, macro-average of six benchmarks) and out-of-domain BFCL-v4 accuracy (%, official weighted average) and RAG exact match (%, macro-average of Bamboogle, 2WikiMultiHopQA, HotpotQA). Mean over 10 runs. Bold marks the best student per model as in the paper. (Subset of Table 1 in the paper: only the Overall columns; per-benchmark scores with standard deviations are in the paper.)
ModelMethodMath (Acc) ↑BFCL-v4 (Acc) ↑RAG (EM) ↑
Qwen3-235B (teacher)Vanilla52.0650.1339.57
Qwen2.5-1.5BVanilla1.7024.001.66
SFT3.1724.592.43
Outcome-based RL6.6925.127.59
Strict RL6.9524.856.39
MENTOR (ours)9.8925.708.39
Qwen2.5-7BVanilla21.3226.3814.05
SFT22.4826.5014.57
Outcome-based RL26.1332.9418.89
Strict RL26.6433.1519.10
MENTOR (ours)28.6333.5220.73
Qwen3-1.7BVanilla33.3729.8116.53
SFT36.3430.1317.45
Outcome-based RL38.6230.6518.18
Strict RL38.9430.9518.42
MENTOR (ours)40.9031.2019.23
Qwen3-8BVanilla39.1241.3531.83
SFT41.4742.1634.14
Outcome-based RL45.1942.7834.81
Strict RL45.7742.9534.66
MENTOR (ours)48.2643.3935.44

BibTeX

@inproceedings{choi-etal-2026-mentor,
    title = "{MENTOR}: Reinforcement Learning via Flexible Teacher-Optimized Rewards for Tool-Use Distillation",
    author = "Choi, ChangSu  and
      Song, Hoyun  and
      Kim, Dongyeon  and
      Cho, Minkyung  and
      Jung, WooHyeon  and
      Park, SunJin  and
      Bae, NohHyeob  and
      Yu, Seona  and
      Lim, KyungTae",
    editor = "Lee, Hung-Yi  and
      Dev, Sunipa  and
      Li, Junyi Jessy  and
      Elliott, Desmond",
    booktitle = "Proceedings of the 2026 Conference on Empirical Methods in Natural Language Processing",
    month = oct,
    year = "2026",
    address = "Budapest, Hungary",
    publisher = "Association for Computational Linguistics",
    url = "https://aclanthology.org/2026.emnlp-main.1286/",
    doi = "10.18653/2026.emnlp-main.1286",
    pages = "29289--29319",
    ISBN = "979-8-89176-459-0"
}
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