  This paper sets out to explore the modulational (or Benjamin-Feir)
instability of a monochromatic wave propagating in the presence of damping such
as that induced by sea-ice on the ocean surface. The fundamental wave motion is
modelled using the spatial Zakharov equation, to which either uniform or
non-uniform (frequency dependent) damping is added. By means of mode truncation
the spatial analogue of the classical Benjamin-Feir instability can be studied
analytically using dynamical systems techniques. The formulation readily yields
the free surface envelope, giving insight into the physical implications of
damping on the modulational instability. The evolution of an initially unstable
mode is also studied numerically by integrating the damped, spatial Zakharov
equation, in order to complement the analytical theory. This sheds light on the
effects of damping on spectral broadening arising from this instability.
