A theory is presented which allows us to accurately calculate the density profile of monovalent and multivalent counterions in suspensions of polarizable colloids or nano-particles. In the case of monovalent ions, we derive a weak-coupling theory that explicitly accounts for the ion-image interaction, leading to a modified Poisson-Boltzmann equation. For suspensions with multivalent counterions, a strong-coupling theory is used to calculate the density profile near the colloidal surface and a Poisson-Boltzmann equation with a renormalized boundary condition to account for the counterion distribution in the far-field. All the results are compared with the Monte Carlo simulations, showing an excellent agreement between the theory and the simulations.PACS numbers: 64.70.pv, 61.20.Qg, 82.45.Gj Colloidal suspensions are of great practical interest for biology, chemistry, and physics. The subject has a long history going back more than a hundred years. In spite of the intense effort, many interesting phenomena which are found in colloidal science have not been fully elucidated. For example, it is well known that the stability of a hydrophobic colloidal suspension depends specifically on the electrolyte present in suspension. Addition of multivalent counterions results in a rapid precipitation of colloidal particles. What is more surprising is that even for monovalent counterions, stability of colloidal suspensions depend strongly on the precise nature of the counterions. Thus, as one goes along the halogen series, the critical coagulation concentrations of positive colloidal particles can decrease by as much as an order of magnitude, when anion is changed from fluoride to iodide [1]. Another interesting phenomenon found in suspensions with multivalent ions is the reversal of electrophoretic mobility [2,3], or equivalently charge reversal [4][5][6][7]. Under some conditions, it is also possible to observe like-charge attraction between the colloidal particles of the same sign of charge [8][9][10][11][12]. Many of these interesting phenomena are the consequence of strong electrostatic correlations between the counterions. The role of electrostatic correlations has been studied using simple models of colloidal suspensions which neglect particle polarizability. The standard Poisson-Boltzmann equation (PB) -used extensively in colloidal science -fails to account for the induced charge at the particle-solvent interface, predicting that the counterion density should remain unaffected by the colloidal polarizability. In this Letter, we will show that the induced colloidal charge significantly modifies the ionic density distribution even for monovalent counterions. The theory developed in this Letter allows us to accurately predict the counterion density distribution both in the weak (monovalent counterions) and strong (multivalent counterions) coupling limits.We will use the primitive model of colloidal suspension in which colloidal particles are represented by hard spheres of radius a and dielectric constant ǫ c with the ...