Many N = 1 heterotic string compactifications exhibit physically myste
rious singularities at codimension one in the moduli space of vacua. A
t these singularities, Yukawa couplings of charged fields develop pole
s as a function of the moduli, We explain these conformal field theory
singularities, in a class of examples, as arising from non-perturbati
ve gauge dynamics of non-perturbative gauge bosons (whose gauge coupli
ng is the sigma model coupling) in the string theory.