The modulational instability associated with propagation of an intense laser pulse through a transversely magnetized plasma is investigated in the presence of collisional effects. The source-dependent expansion method for analyzing the wave equation is employed. The dispersion relation is obtained and modulational instability and its growth rate are studied. It is shown that in the absence of collisional effects the modulational instability is restricted to the small wavenumber region and the constant magnetic field reduces the growth rate of the instability. In contrast, in the collisional plasma, there is no upper limit of wavenumber for the existence of modulational instability. In addition, in this case, the growth rate of instability increases as the collision frequency goes up.