We review the ghost-free four-derivative terms for chiral superfields in $\mathcal{N}=1$ supersymmetry and supergravity. These terms induce cubic polynomial equations of motion for the chiral auxiliary fields and correct the scalar potential... We discuss the different solutions and argue that only one of them is consistent with the principles of effective field theory. Special attention is paid to the corrections along flat directions which can be stabilized or destabilized by the higher-derivative terms. We then compute these higher-derivative terms explicitly for the type IIB string compactified on a Calabi-Yau orientifold with fluxes via Kaluza-Klein reducing the $(\alpha')^3 R^4$ corrections in ten dimensions for the respective $\mathcal{N}=1$ K\"{a}hler moduli sector. We prove that together with flux and the known $(\alpha')^3$-corrections the higher-derivative term stabilizes all Calabi-Yau manifolds with positive Euler number, provided the sign of the new correction is negative. (read more)