Effect of magnetic field on the thermal instability is studied in the radiatively cooling region behind an interstellar shock of moderate propagation velocity (${sim}10;km/sec$). It is shown that the presence of interstellar magnetic field of a few micro gauss is very effective in preventing the thermal instability from building-up density concentration. In the absence of magnetic field, the shock-induced thermal instability amplifies preshock density inhomogeneity by more than an order of magnitude. However, in the presence of magnetic field, the amplified density contrast is shown to be only a factor 2.