DRAG: Distilling RAG for SLMs from LLMs to Transfer Knowledge and Mitigate Hallucination via Evidence and Graph-based Distillation

Jennifer Chen, Aidar Myrzakhan, Yaxin Luo, Hassaan Muhammad Khan, Sondos Mahmoud Bsharat, Zhiqiang Shen


Abstract
Retrieval-Augmented Generation (RAG) methods have proven highly effective for tasks requiring factual consistency and robust knowledge retrieval. However, large-scale RAG systems consume significant computational resources and are prone to generating “hallucinated” content from Humans. In this work, we introduce DRAG, a novel framework for distilling RAG knowledge from large-scale Language Models (LLMs) into small LMs (SLMs). Our approach leverages evidence- and knowledge graph–based distillation, ensuring that the distilled model retains critical factual knowledge while significantly reducing model size and computational cost. By aligning the smaller model’s predictions with a structured knowledge graph and ranked evidence, DRAG effectively mitigates hallucinations and improves factual accuracy. We further present a case demonstrating how our framework mitigates user privacy risks and introduce a corresponding benchmark. Experimental evaluations on multiple benchmarks demonstrate that our method outperforms the prior competitive RAG methods like MiniRAG for SLMs by up to 27.7% using the same models, preserving high-level efficiency and reliability. With DRAG, we provide a practical and resource-efficient roadmap to deploying enhanced retrieval and generation capabilities in small-size LLMs. Code is available at https://github.com/VILA-Lab/DRAG.
Anthology ID:
2025.acl-long.358
Volume:
Proceedings of the 63rd Annual Meeting of the Association for Computational Linguistics (Volume 1: Long Papers)
Month:
July
Year:
2025
Address:
Vienna, Austria
Editors:
Wanxiang Che, Joyce Nabende, Ekaterina Shutova, Mohammad Taher Pilehvar
Venue:
ACL
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Publisher:
Association for Computational Linguistics
Note:
Pages:
7240–7260
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URL:
https://preview.aclanthology.org/ingestion-acl-25/2025.acl-long.358/
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Cite (ACL):
Jennifer Chen, Aidar Myrzakhan, Yaxin Luo, Hassaan Muhammad Khan, Sondos Mahmoud Bsharat, and Zhiqiang Shen. 2025. DRAG: Distilling RAG for SLMs from LLMs to Transfer Knowledge and Mitigate Hallucination via Evidence and Graph-based Distillation. In Proceedings of the 63rd Annual Meeting of the Association for Computational Linguistics (Volume 1: Long Papers), pages 7240–7260, Vienna, Austria. Association for Computational Linguistics.
Cite (Informal):
DRAG: Distilling RAG for SLMs from LLMs to Transfer Knowledge and Mitigate Hallucination via Evidence and Graph-based Distillation (Chen et al., ACL 2025)
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https://preview.aclanthology.org/ingestion-acl-25/2025.acl-long.358.pdf