One of the first uses of optical interferometry was applied by the Michelson stellar interferometer on the Mount Wilson Observatory's reflector telescope to measure the diameters of stars. The red giant star Betelgeuse was the first to have its diameter determined in this way on December 13, 1920. In the 1940s radio interferometry was used to perform the first high resolution radio astronomy observations. For the next three decades astronomical interferometry research was dominated by research at radio wavelengths, leading to the development of large instruments such as the Very Large Array and the Atacama Large Millimeter Array.

Optical/infrared interferometry was extended to measurements using separated telescopes by Johnson, Betz and Townes (1974) in the infrared and by Labeyrie (1975) in the visible. In the late 1970s improvements in computer processing allowed for the first "fringe-tracking" interferometer, which operates fast enough to follow the blurring effects of astronomical seeing, leading to the Mk I, II and III series of interferometers. Similar techniques have now been applied at other astronomical telescope arrays, including the Keck Interferometer and the Palomar Testbed Interferometer.

In the 1980s the aperture synthesis interferometric imaging technique was extended to visible light and infrared astronomy by the Cavendish Astrophysics Group, providing the first very high resolution images of nearby stars. In 1995 this technique was demonstrated on an array of separate optical telescopes for the first time, allowing a further improvement in resolution, and allowing even higher resolution imaging of stellar surfaces. Software packages such as BSMEM or MIRA are used to convert the measured visibility amplitudes and closure phases into astronomical images. The same techniques have now been applied at a number of other astronomical telescope arrays, including the Navy Prototype Optical Interferometer, the Infrared Spatial Interferometer and the IOTA array. A number of other interferometers have made closure phase measurements and are expected to produce their first images soon, including the VLTI, the CHARA array and Le Coroller and Dejonghe's Hypertelescope prototype. If completed, the MRO Interferometer with up to ten movable telescopes will produce among the first higher fidelity images from a long baseline interferometer. The Navy Optical Interferometer took the first step in this direction in 1996, achieving 3-way synthesis of an image of Mizar; then a first-ever six-way synthesis of Eta Virginis in 2002; and most recently "closure phase" as a step to the first synthesized images produced by geostationary satellites.

Notable 1990s results included the Mark III measurement of diameters of 100 stars and many accurate stellar positions, COAST and NPOI producing many very high resolution images, and Infrared Stellar Interferometer measurements of stars in the mid-infrared for the first time. Additional results include direct measurements of the sizes of and distances to Cepheid variable stars, and young stellar objects.

At radio wavelengths, interferometers such as the Very Large Array and MERLIN have been in operation for many years. The distances between telescopes are typically 10–100 km (6.2–62.1 mi), although arrays with much longer baselines utilize the techniques of Very Long Baseline Interferometry. In the (sub)-millimetre, existing arrays include the Submillimeter Array and the IRAM Plateau de Bure facility. The Atacama Large Millimeter Array has been fully operational since March 2013.

Optical interferometers are mostly seen by astronomers as very specialized instruments, capable of a very limited range of observations. It is often said that an interferometer achieves the effect of a telescope the size of the distance between the apertures; this is only true in the limited sense of angular resolution. The amount of light gathered—and hence the dimmest object that can be seen—depends on the real aperture size, so an interferometer would offer little improvement as the image is dim (the thinned-array curse). The combined effects of limited aperture area and atmospheric turbulence generally limits interferometers to observations of comparatively bright stars and active galactic nuclei. However, they have proven useful for making very high precision measurements of simple stellar parameters such as size and position (astrometry), for imaging the nearest giant stars and probing the cores of nearby active galaxies.