diff --git a/tools/template/cli.py b/tools/template/cli.py
index d922025e070f..eea46ec0388a 100644
--- a/tools/template/cli.py
+++ b/tools/template/cli.py
@@ -7,6 +7,7 @@
 import importlib
 import os
 from collections.abc import Callable
+from textwrap import fill
 
 import rich.console
 import rich.table
@@ -213,21 +214,21 @@ def main() -> None:
     # - show supported RL libraries and features
     rl_library_table = rich.table.Table(title="Supported RL libraries")
     rl_library_table.add_column("RL/training feature", no_wrap=True)
-    rl_library_table.add_column("rl_games")
-    rl_library_table.add_column("rsl_rl")
-    rl_library_table.add_column("skrl")
-    rl_library_table.add_column("sb3")
+    rl_library_table.add_column("rl_games", overflow="fold")
+    rl_library_table.add_column("rsl_rl", overflow="fold")
+    rl_library_table.add_column("skrl", overflow="fold")
+    rl_library_table.add_column("sb3", overflow="fold")
     rl_library_table.add_row("ML frameworks", "PyTorch", "PyTorch", "PyTorch, JAX", "PyTorch")
     rl_library_table.add_row("Relative performance", "~1X", "~1X", "~1X", "~0.03X")
     rl_library_table.add_row(
         "Algorithms",
-        ", ".join(algorithms_per_rl_library.get("rl_games", [])),
-        ", ".join(algorithms_per_rl_library.get("rsl_rl", [])),
-        ", ".join(algorithms_per_rl_library.get("skrl", [])),
-        ", ".join(algorithms_per_rl_library.get("sb3", [])),
+        fill(", ".join(algorithms_per_rl_library.get("rl_games", [])), width=12, break_long_words=False),
+        fill(", ".join(algorithms_per_rl_library.get("rsl_rl", [])), width=12, break_long_words=False),
+        fill(", ".join(algorithms_per_rl_library.get("skrl", [])), width=12, break_long_words=False),
+        fill(", ".join(algorithms_per_rl_library.get("sb3", [])), width=12, break_long_words=False),
     )
     rl_library_table.add_row("Multi-agent support", State.No, State.No, State.Yes, State.No)
-    rl_library_table.add_row("Distributed training", State.Yes, State.No, State.Yes, State.No)
+    rl_library_table.add_row("Distributed training", State.Yes, State.Yes, State.Yes, State.No)
     rl_library_table.add_row("Vectorized training", State.Yes, State.Yes, State.Yes, State.No)
     rl_library_table.add_row("Fundamental/composite spaces", State.No, State.No, State.Yes, State.No)
     cli_handler.output_table(rl_library_table)
diff --git a/tools/template/common.py b/tools/template/common.py
index 08d2732a1911..b6f375b130b6 100644
--- a/tools/template/common.py
+++ b/tools/template/common.py
@@ -11,5 +11,5 @@
 TEMPLATE_DIR = os.path.join(ROOT_DIR, "tools", "template", "templates")
 
 # RL algorithms
-SINGLE_AGENT_ALGORITHMS = ["AMP", "PPO"]
+SINGLE_AGENT_ALGORITHMS = ["AMP", "PPO", "DISTILLATION"]
 MULTI_AGENT_ALGORITHMS = ["IPPO", "MAPPO"]
diff --git a/tools/template/templates/agents/rsl_rl_distillation_cfg b/tools/template/templates/agents/rsl_rl_distillation_cfg
new file mode 100644
index 000000000000..020e2dbc21ac
--- /dev/null
+++ b/tools/template/templates/agents/rsl_rl_distillation_cfg
@@ -0,0 +1,34 @@
+# Copyright (c) 2022-2025, The Isaac Lab Project Developers (https://github.com/isaac-sim/IsaacLab/blob/main/CONTRIBUTORS.md).
+# All rights reserved.
+#
+# SPDX-License-Identifier: BSD-3-Clause
+
+from isaaclab.utils import configclass
+
+from isaaclab_rl.rsl_rl import RslRlDistillationAlgorithmCfg, RslRlDistillationRunnerCfg, RslRlMLPModelCfg
+
+
+@configclass
+class DistillationRunnerCfg(RslRlDistillationRunnerCfg):
+    num_steps_per_env = 60
+    max_iterations = 150
+    save_interval = 50
+    experiment_name = "cartpole_direct"
+    obs_groups = {"student": ["policy"], "teacher": ["policy"]}
+    student = RslRlMLPModelCfg(
+        hidden_dims=[32, 32],
+        activation="elu",
+        obs_normalization=False,
+        distribution_cfg=RslRlMLPModelCfg.GaussianDistributionCfg(init_std=1.0),
+    )
+    teacher = RslRlMLPModelCfg(
+        hidden_dims=[32, 32],
+        activation="elu",
+        obs_normalization=False,
+        distribution_cfg=RslRlMLPModelCfg.GaussianDistributionCfg(init_std=0.0),
+    )
+    algorithm = RslRlDistillationAlgorithmCfg(
+        num_learning_epochs=2,
+        learning_rate=1.0e-3,
+        gradient_length=15,
+    )
diff --git a/tools/template/templates/agents/rsl_rl_ppo_cfg b/tools/template/templates/agents/rsl_rl_ppo_cfg
index 85970dfc2ce4..d83409033f6d 100644
--- a/tools/template/templates/agents/rsl_rl_ppo_cfg
+++ b/tools/template/templates/agents/rsl_rl_ppo_cfg
@@ -5,7 +5,7 @@
 
 from isaaclab.utils import configclass
 
-from isaaclab_rl.rsl_rl import RslRlOnPolicyRunnerCfg, RslRlPpoActorCriticCfg, RslRlPpoAlgorithmCfg
+from isaaclab_rl.rsl_rl import RslRlMLPModelCfg, RslRlOnPolicyRunnerCfg, RslRlPpoAlgorithmCfg
 
 
 @configclass
@@ -14,13 +14,17 @@ class PPORunnerCfg(RslRlOnPolicyRunnerCfg):
     max_iterations = 150
     save_interval = 50
     experiment_name = "cartpole_direct"
-    policy = RslRlPpoActorCriticCfg(
-        init_noise_std=1.0,
-        actor_obs_normalization=False,
-        critic_obs_normalization=False,
-        actor_hidden_dims=[32, 32],
-        critic_hidden_dims=[32, 32],
+    obs_groups = {"actor": ["policy"], "critic": ["policy"]}
+    actor = RslRlMLPModelCfg(
+        hidden_dims=[32, 32],
         activation="elu",
+        obs_normalization=False,
+        distribution_cfg=RslRlMLPModelCfg.GaussianDistributionCfg(init_std=1.0),
+    )
+    critic = RslRlMLPModelCfg(
+        hidden_dims=[32, 32],
+        activation="elu",
+        obs_normalization=False,
     )
     algorithm = RslRlPpoAlgorithmCfg(
         value_loss_coef=1.0,