  We study gaugino condensation in the context of superstring effective
theories using the linear multiplet formulation for the dilaton superfield.
Including nonperturbative corrections to the K\"ahler potential for the dilaton
may naturally achieve dilaton stabilization, with supersymmetry breaking and
gaugino condensation; these three issues are interrelated in a very simple way.
In a toy model with a single static condensate, a dilaton $vev$ is found within
a phenomenologically interesting range. The effective theory differs
significantly from condensate models studied previously in the chiral
formulation.
