In negative-index materials (NIMs), the self-steepening (SS) effect is proven to be anomalous in two aspects: First, it can be either positive or negative, with the zero SS point determined by the size of split-ring resonator circuit elements. Second, the negative SS parameter can have a very large value compared to an ordinary positive-index material. We present a theoretical investigation on modulation instability (MI) to identify the role of the anomalous SS effect in NIM. We find that the first anomaly of SS doesn't influence MI, yet the controllable zero SS point can be used to manipulate MI, and thus manipulate the generation of solitons. The second anomaly, however, leads to significant changes in the MI condition and property, compared with the case of an ordinary positive-index material. Numerical simulations confirm the theoretical results and show that negative SS moves the center of generated pulse toward the leading side, and shifts a part of energy of the generated pulse toward the red side, opposite to the case of positive SS.