Abstract Photonic lanterns (PLs) are tapered waveguides that gradually transition from a multimode fiber geometry to a bundle of single-mode fibers (SMFs). They can efficiently couple multimode telescope light into a multimode fiber entrance at the focal plane and convert it into multiple single-mode beams. Thus, each SMF samples its unique mode (lantern principal mode) of the telescope light in the pupil, analogous to subapertures in aperture masking interferometry (AMI). Coherent imaging with PLs can be enabled by the interference of SMF outputs and applying phase modulation, which can be achieved using a photonic chip beam combiner at the backend (e.g., the ABCD beam combiner). In this study, we investigate the potential of coherent imaging by the interference of SMF outputs of a PL with a single telescope. We demonstrate that the visibilities that can be measured from a PL are mutual intensities incident on the pupil weighted by the cross correlation of a pair of lantern modes. From numerically simulated lantern principal modes of a 6-port PL, we find that interferometric observables using a PL behave similarly to separated-aperture visibilities for simple models on small angular scales (<λ/D) but with greater sensitivity to symmetries and capability to break phase angle degeneracies. Furthermore, we present simulated observations with wave front errors (WFEs) and compare them to AMI. Despite the redundancy caused by extended lantern principal modes, spatial filtering offers stability to WFEs. Our simulated observations suggest that PLs may offer significant benefits in the photon-noise-limited regime and in resolving small angular scales at the low-contrast regime.