Prompting Policies for Multi-step Reasoning and Tool-Use in Black-box LLMs with Iterative Distillation of Experience
Abstract
The shift toward interacting with frozen, "black-box" Large Language Models (LLMs) has transformed prompt engineering from a heuristic exercise into a critical optimization challenge. We propose a Reinforcement Learning (RL) framework for training learned prompting policies via iterative distillation of experience. In this architecture, a lightweight prompter model is optimized to maximize task-specific rewards for a larger, frozen worker LLM. By utilizing a contrastive experience buffer that couples scalar rewards with dense textual critiques, our approach effectively amortizes iterative prompt refinement into single-shot policy weights. Our experimental analysis focuses on the Big Bench Extra Hard (BBEH) and Tau-bench suites, covering a diverse range of multi-step reasoning and tool-use tasks. We demonstrate significant gains, improving performance from 55% to 90% in logic-intensive reasoning and 74% to 91% in tool-use tasks. Furthermore, we analyze the structural evolution of prompts, demonstrating how the policy discovers specialized algorithmic heuristics. We provide comprehensive comparisons against state-of-the-art evolutionary baselines like GEPA, showing that iterative distillation achieves superior performance with higher sample efficiency.
Keywords
Cite
@article{arxiv.2605.14443,
title = {Prompting Policies for Multi-step Reasoning and Tool-Use in Black-box LLMs with Iterative Distillation of Experience},
author = {Krishna Sayana and Ketan Todi and Ambarish Jash},
journal= {arXiv preprint arXiv:2605.14443},
year = {2026}
}
Comments
10 pages and reference, appendix