Discrete modulational instability within the first band of uniform one-dimensional waveguide arrays possessing a saturable self-defocusing nonlinearity is investigated in detail within the coupled mode approach. Explicit analytical results for both the threshold and the maximal gain of instability are compared with the corresponding data from waveguide arrays exhibiting Kerr nonlinearity. We find that saturation bounds the interval of existence of discrete modulational instability, stabilizes the frequency region of perturbations around ±π/2 and decreases both gain and critical spatial frequency of perturbations. © 2006 Elsevier B.V. All rights reserved.