A study of D-instantons on orbifolds will be presented. The K3 Z 2-orbifold limit will be studied in detail. A quantitative test of heterotic/type II duality will be given and used to infer the full D and NS5 instanton corrections to F 4 couplings on K3 and K3 ¥ T 2 An outcome is the calculation of the bulk contribution to the index of the NS5-brane world-volume theory wrapped on K3 ¥ T 2.