We review the theory and phenomenology of effective supergravity theories based on orbifold compactifications of the weakly-coupled heterotic string. In particular, we consider theories in which the four-dimensional theory displays target space modular invariance and where the dilatonic mode undergoes Kähler stabilization. A self-contained exposition of effective Lagrangian approaches to gaugino condensation and heterotic string theory is presented, leading to the development of the models of Binétruy, Gaillard and Wu. Various aspects of the phenomenology of this class of models are considered. These include issues of supersymmetry breaking and superpartner spectra, the role of anomalous U(1) factors, issues of flavor and R-parity conservation, collider signatures, axion physics, and early universe cosmology. For the vast majority of phenomenological considerations the theories reviewed here compare quite favorably to other string-derived models in the literature. Theoretical objections to the framework and directions for further research are identified and discussed.