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Modulation instability with subsideband generation induced by periodic power variation in soliton fiber ring lasers is reported. We found that different wavelength shifts of subsideband generation are related to different periodic power variation. The period of power variation and wavelength shifts of subsideband can be changed by altering the linear cavity phase delay. It is also found that the periodic power variation is caused by the interaction between the nonuniform polarization state of the circulating light and the polarizer in the laser cavity., Comment: 16 pages, 6 figures