We report on the pulsed laser ablation of aluminum (Al) plasma in presence of ambient nitrogen to understand the formation of aluminum nitride (AlN). Formation of carbon nitride (CN) and titanium oxide (TiO) by pulsed laser-ablation of graphite and titanium targets in presence of ambient nitrogen and oxygen is also compared. We discuss the dynamics of plasma expansion based on existing models, shock and drag models, and the plasma gas interface distortion, Rayleigh-Taylor instability at various ambient pressures of nitrogen. Since Rayleigh-Taylor instability may give rise to self-generated magnetic field in the plasma, an attempt is made to understand the mechanism of generation as well as the estimation of this field near the focal spot using the information from the images of the expanding plasma. This is the first time images of the expanding plume are used to estimate self generated magnetic fields. At the irradiance level used in the experiment the field is high very close to the target surface therefore we expect splitting of the energy levels thus giving rise to emissions that may be anisotropic in nature. We discuss the extent of anisotropy by measuring the degree of polarization using emission intensity in optical emission spectrum of selected Al III transition 4s 2S1/2–4p 2P3/2o at 569.6 nm using both nanosecond and picosecond pulses.