When Synthetic Data Hurts: On Catastrophic Forgetting in Skill Retrieval for LLM Agents

Syed Shariyar Murtaza, Yifan Nie, Utkarsh Soni, Eugene Wen, Arvid Frydenlund


Abstract
LLM agents increasingly rely on external skills retrieved at runtime, making skill selection from large repositories a critical challenge. We present a production skill router over 34,396 skills and a large-scale study of skill retrieval using limited real supervision and synthetic data. We found that the synthetic-data fine-tuning improves in-distribution retrieval but it causes catastrophic forgetting on real and out-of-distribution (OOD) data. We evaluate several forgetting mitigation fine-tuning approaches inspired by continual learning, including embedding-anchor regularization, Learning without Forgetting (LwF), Elastic Weight Consolidation (EWC), and L2-initialization. The results show that these approaches not only retain the performance on OOD skills retrieval but also improve the retrieval on synthetic in-distribution skills by 13.98% for 0.6B Qwen retriever and reranker. Our results provide a practical benchmark and a robust fine-tuning recipe for scarce, multi-positive supervision.
Anthology ID:
2026.emnlp-industry.172
Volume:
Proceedings of the 2026 Conference on Empirical Methods in Natural Language Processing: Industry Track
Month:
October
Year:
2026
Address:
Budapest, Hungary
Editors:
Pepa Atanasova, Gholamreza Haffari, Minghan Wang
Venue:
EMNLP
SIG:
SIGDAT
Publisher:
Association for Computational Linguistics
Note:
Pages:
2924–2938
Language:
URL:
https://aclanthology.org/2026.emnlp-industry.172/
DOI:
Bibkey:
Cite (ACL):
Syed Shariyar Murtaza, Yifan Nie, Utkarsh Soni, Eugene Wen, and Arvid Frydenlund. 2026. When Synthetic Data Hurts: On Catastrophic Forgetting in Skill Retrieval for LLM Agents. In Proceedings of the 2026 Conference on Empirical Methods in Natural Language Processing: Industry Track, pages 2924–2938, Budapest, Hungary. Association for Computational Linguistics.
Cite (Informal):
When Synthetic Data Hurts: On Catastrophic Forgetting in Skill Retrieval for LLM Agents (Murtaza et al., EMNLP 2026)
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PDF:
https://aclanthology.org/2026.emnlp-industry.172.pdf