This paper studies the effect of polarization force on the radiative condensation (RC) instability of a partially ionized dusty medium both in the presence and absence of self-gravitation. The temperature and density dependent heat loss function is considered in the process of heating and radiative cooling. The linear-perturbation analysis is used to derive general dispersion relation and criteria for both the Jeans and RC instability. The condition of Jeans instability is modified due to the RC, polarization force, magnetic field and dust thermal speed, whereas in the case of RC instability the instability criterion is modified due to the presence of dust thermal speed, magnetic field and polarization force. The effects of various parameters have been numerically estimated on RC instability. It is clear from figure that the presence of polarization parameter and density dependent heat-loss function destabilize the system while the presence of temperature dependent heat-loss function, dust neutral collision frequency and ratio of neutral dust density stabilize the system. These findings are relevant for many areas of space and laboratory plasma research prime examples being the formation of dense molecular clouds in interstellar and intergalactic medium, condensations in planetary nebulae and in laboratory plasmas like tokamak edge plasma.