Abstract:Heterogeneous Federated Learning (HFL) has gained attention for its ability to accommodate diverse models and heterogeneous data across clients. Prototype-based HFL methods emerge as a promising solution to address statistical heterogeneity and privacy challenges, paving the way for new advancements in HFL research. This method focuses on sharing only class-representative prototypes among heterogeneous clients. However, these prototypes are often aggregated on the server using weighted averaging, leading to sub-optimal global knowledge; these cause the shrinking of aggregated prototypes, which negatively affects the model performance in scenarios when models are heterogeneous and data distributions are extremely non-IID. We propose FedProtoKD in a Heterogeneous Federated Learning setting, using an enhanced dual-knowledge distillation mechanism to improve the system performance with clients' logits and prototype feature representation. We aim to resolve the prototype margin-shrinking problem using a contrastive learning-based trainable server prototype by leveraging a class-wise adaptive prototype margin. Furthermore, we assess the importance of public samples using the closeness of the sample's prototype to its class representative prototypes, which enhances learning performance. FedProtoKD achieved average improvements of 1.13% up to 34.13% accuracy across various settings and significantly outperforms existing state-of-the-art HFL methods.