General Information
- Title: Adapting World Models with Latent-State Dynamics Residuals
- Authors: JB Lanier, Kyungmin Kim, Armin Karamzade, Yifei Liu, Ankita Sinha, Kat He, Davide Corsi, Roy Fox
- Institution: University of California Irvine, USA
- Citation: Lanier, J.B., Kim, K., Karamzade, A., Liu, Y., Sinha, A., He, K., Corsi, D. and Fox, R., 2025. Adapting World Models with Latent-State Dynamics Residuals. arXiv preprint arXiv:2504.02252.
Adapting World Models with Latent-State Dynamics Residuals
Training agents for robotics applications requires a substantial amount of data, which is typically costly to collect in the real world. Running simulations is, therefore a logical approach to training agents. But to what degree do simulations provide information that correctly predicts behavior in the real world? In other words, how well do “things” learned in simulation transfer to reality? Sim2Real transfer is an exciting topic and an active area of research.
Simulation-based reinforcement learning often encounters transfer failures due to discrepancies between simulated and real-world dynamics.
This work introduces a method for model adaptation using Latent-State Dynamics Residuals, which correct transition functions in a learned latent space. A latent-variable world model, DRAW, is trained in simulation using variational inference to encode high-dimensional observations into compact multi-categorical latent variables.
The forward dynamics are modeled via autoregressive prediction of latent transitions. A residual learning function is trained on a small, offline real-world dataset without reward supervision to adjust the simulated dynamics. The resulting model, ReDRAW, modifies the forward dynamics logits using residual corrections and enables policy training via actor-critic reinforcement learning on imagined rollouts.
The reward model is reused from the simulation without retraining. To generate diverse training data, the method uses Plan2Explore, which promotes exploration by maximizing model uncertainty. Visual encoders trained in simulation are reused for real-world inputs through zero-shot perception transfer, without fine-tuning.
The approach avoids explicit observation-space correction and operates entirely in the latent space, achieving efficient sim-to-real policy deployment.
Highlights - adapting world models with latent-state dynamics residuals
Here is a visual tour of the sim-to-real work of the authors. For all the details, check out the full paper.




Abstract
Here is the abstract of the work, directly in the words of the authors:
Simulation-to-reality (sim-to-real) reinforcement learning (RL) faces the critical challenge of reconciling discrepancies between simulated and real-world dynamics, which can severely degrade agent performance. A promising approach involves learning corrections to simulator forward dynamics represented as a residual error function, however this operation is impractical with high-dimensional states such as images. To overcome this, we propose ReDRAW, a latent-state autoregressive world model pretrained in simulation and calibrated to target environments through residual corrections of latent-state dynamics rather than of explicit observed states. Using this adapted world model, ReDRAW enables RL agents to be optimized with imagined rollouts under corrected dynamics and then deployed in the real world. In multiple vision-based MuJoCo domains and a physical robot visual lane-following task, ReDRAW effectively models changes to dynamics and avoids overfitting in low data regimes where traditional transfer methods fail.
Limitations and Future Work - adapting world models with latent-state dynamics residuals
Here are the limitations and future work according to the authors of this paper:
A potential limitation with ReDRAWis that it excels at maintaining high target-environment performance over many updates because the residual avoids overfitting due to its low complexity. This suggests that only conceptually simple changes to dynamics may effectively be modeled with low amounts of data, warranting future investigation. We additionally want to explore if residual adaptation methods can be meaningfully applied to foundation world models, efficiently converting them from generators of plausible dynamics to generators of specific dynamics.
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Project Authors
JB (John Banister) Lanier is a Computer Science PhD Student at UC Irvine, USA.
Kyungmin Kim is a Computer Science PhD Student at UC Irvine, USA.
Armin Karamzade is a Computer Science PhD Student at UC Irvine, USA.
Yifei Liu is a currently an M.S. in Robotics at Carnegie Mellon University, USA.
Ankita Sinha is currenly working as a senior LLM engineer at NVIDIA, USA.

Kat He was affiliated to UC Irvine, USA during this research.
Davide Corsi is a Postdoctoral Researcher at UC Irvine, USA.
Roy Fox is an Assistant Professor and director of the Intelligent Dynamics Lab (indylab) in the Department of Computer Science in the Donald Bren School of Information & Computer Science at the University of California, Irvine.
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