In this work, we consider radiation (thermal) instability in a weakly ionized plasma with continuous ionization and recombination. The situation can be visualized in the case of envelopes of planetary nebulae, which are envelopes of ionized plasmas surrounding red giant stars. Various observations report continuous photoionization of these plasmas by the highly energetic streams of photons emanating from the parent star. Recently, it has been shown that thermal instability can be a probable candidate in such plasmas for the existence of small scale structures (viz., striations) whose kinematic age is much smaller than that of the parent nebula. We therefore report a systematic study of these plasmas with photoionization and determine the instability domain. We have shown that the continuous ionization and recombination may lead to modification of the underlying instability, which may limit the size of the small structures that are believed to form from these instabilities, and may thus provide an explanation of the physical processes responsible for the existence of these structures. We further show that in many cases the system bifurcates to an ovserstable (growing wave) state from a condensation instability (monotonic) and vice versa.