The modulation instability of a dust ion-acoustic (DIA) wave in a highly collisional dusty plasma is studied theoretically. In this investigation, effects of ionization, ion loss, and electron superthermality on the DIA wave are included. By employing the standard reductive perturbation technique, a modified-nonlinear Schödinger equation (mNLSE) is developed for the evolution of the slowly varying amplitude of the DIA wave. A detailed analysis of the linear and nonlinear dispersions of the DIA wave is presented. Relevant to some astrophysical objects with typical parameters, it is found that the DIA wave is modulationally unstable below a certain critical wavenumber. Effects of the electron superthermality as well as the ionization and ion loss in the wave dynamics are also studied. It is found that the electron superthermality has a significant effect on the nonlinearity as well as on the damping of the DIA wave. It is also found that the critical wavenumber for the modulation instability is highly dependent on the parameter κ, known as the spectral index of the electron superthermality. Numerical results on the linear and nonlinear dispersions of the DIA wave are described. A parameter study on the Rouge wave solution of the mNLSE is also presented.