We study gaugino condensation in the context of superstring effective theories using the linear multiplet formulation for the dilaton superfield. Including non-perturbative corrections to the Kahler 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.