  In this paper we show how some flavor symmetries may be derived from the
heterotic string, when compactified on a 6D orbifold. In the body of the paper
we focus on the $D_4$ family symmetry, recently obtained in $Z_3 \times Z_2$
orbifold constructions. We show how this flavor symmetry constrains fermion
masses, as well as the soft SUSY breaking mass terms. Flavor symmetry breaking
can generate the hierarchy of fermion masses and at the same time the flavor
symmetry suppresses large flavor changing neutral current processes.
