Modulational instability (MI) is a generic phenomenon in nonlinear physics responsible for spontaneous pattern formation in uniform media [1].It occurs under combined effects of nonlinearity and dispersion (in temporal domain) or diffraction (in spatial domain), when the constant background wave (CW) becomes unstable against small amplitude spatially periodic perturbations in a specific range of wavenumbers.MI is considered as a precursor to formation of localized nonlinear excitations, or soliton trains.The objective of this work consists in studying the MI in a discrete two-component NLS equation that may arise due to the effect of cubic-quintic nonlinearity, and associated inter-component couplings with applications in optics and BEC [2].