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Context Distillation for Agents (EXPLAINED)

Project BasedPrompt EngineeringHard20 min read

Compress agent memory into durable distilled state while preserving goals, constraints, and tool outcomes.

TL;DR — Quick Answer

Context distillation periodically converts verbose agent history into compact structured state — goals, facts, decisions, open tasks — that replaces raw logs in the prompt. It preserves task continuity while slashing tokens, but must be eval-gated so safety rules and negated constraints are not dropped.

The Interview Question

What is context distillation for agents, and how does it keep long-running sessions within budget?

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DistillationAgentsMemoryCompressionAnthropicOpenAI