Large language models (LLMs) have revolutionized natural language processing (NLP), demonstrating remarkable capabilities in tasks such as text generation, reasoning, and understanding. However, their substantial computational and memory requirements pose significant challenges for deployment in resourceconstrained environments, including edge devices and real-time applications. Knowledge distillation has emerged as a pivotal technique for addressing these challenges, offering an efficient means of compressing LLMs while preserving their performance. This paper presents a comprehensive examination of knowledge distillation methodologies and their role in enabling scalable and efficient LLMs. We explore foundational techniques, such as soft label transfer, feature alignment, and attention replication, which underpin the distillation process. Advanced methods, including task-specific optimizations, self-distillation, and multimodal distillation, are discussed in detail, showcasing their ability to capture and transfer high-level semantic knowledge. The integration of distillation with other model compression strategies, such as pruning, quantization, and tensor decomposition, is also analyzed, illustrating their synergistic potential to achieve state-of-the-art efficiency gains. While knowledge distillation has achieved remarkable success, several challenges remain unaddressed. These include replicating emergent behaviors, such as reasoning and zero-shot generalization, ensuring robustness across diverse domains, and mitigating the environmental and ethical implications of model training and compression. We highlight promising avenues for future research, including adaptive and dynamic distillation strategies, scalable frameworks for massive teacher models, and automated distillation pipelines leveraging neural architecture search. Additionally, we emphasize the need for standardized evaluation metrics and benchmarks to facilitate consistent and comprehensive assessments of distillation outcomes. Through a detailed synthesis of current advancements and open challenges, this paper underscores the transformative potential of knowledge distillation in democratizing access to cutting-edge LLMs. By advancing the state of the art in this domain, researchers and practitioners can develop efficient, high-performance models that bridge the gap between technical innovation and practical usability, fostering inclusivity and sustainability across a wide range of applications.