We study theoretically and experimentally the modulational instability of broad optical beams in photorefractive nonlinear media. We demonstrate the impact of the anisotropy of the nonlinearity on the growth rate of periodic perturbations. Our findings are confirmed by experimental measurements in a strontium barium niobate photorefractive crystal.PACS numbers: 42.65. Hw, 42.65.Jx A plane wave propagating in a medium with focusing nonlinearity is unstable with respect to the generation of small scale filaments [1]. This so called modulational instability (MI) phenomenon, has been extensively studied because of its importance as a factor limiting the propagation of high power beams. Filamentation may also be identified as the first stage in the development of turbulent fluctuations in the transverse profile of a laser beam [2]. In addition, MI is often considered as a precursor for the formation of spatial and/or temporal optical solitons. As far as optics is concerned, MI has been studied in media with various mechanisms of nonlinear response including cubic [1], quadratic [3], nonlocal [4,5] and inertial [6,7] types of nonlinearity. Importantly, MI is not restricted to nonlinear optics but has also been studied in many other nonlinear systems including fluids [8], plasmas [9] and matter waves [10].In the context of optical beam propagation in nonlinear materials MI has usually been considered in media with spatially isotropic nonlinear properties. Recently a great deal of theoretical and experimental efforts have been devoted to studies of nonlinear optical effects and soliton formation in photorefractive crystals [11,12,13]. While these media exhibit strong nonlinearity at very low optical power their nonlinear response is inherently anisotropic [14]. The anisotropy causes a number of observable effects including astigmatic self-focusing of optical beams [15], elliptically shaped solitary solutions [16], geometry-sensitive interactions of solitons [17], and fixed optical pattern orientation [18].Several previous studies of MI in the context of photorefractive media were limited to a 1-dimensional geometry where the anisotropy is absent [19,20,21], and the physics is similar to the standard saturable nonlinearity [22]. On the other hand, in a real physical situation where one deals with finite sized beams, the anisotropic aspects of the photorefractive nonlinear response are expected to play a significant role. Some previous work [23,24] already indicated the importance of anisotropy in the transversal break-up of broad beams propagating in biased photorefractive crystals. However, no detailed analysis of this phenomenon was carried out. In this paper we study the MI of optical beams in photorefractive media taking into account the full 2-dimensional anisotropic model of the photorefractive nonlinearity.Time independent propagation of an optical beam E(r, z) = (A/2)e ı(kz−ωt) + c.c. in a nonlinear medium with a weakly varying index of refraction is governed by the parabolic equationHere r = (x, y) and z are ...