  The present `state of the art' and the path to future progress in high
spatial resolution imaging interferometry is reviewed. The review begins with a
treatment of the fundamentals of stellar optical interferometry, the origin,
properties, optical effects of turbulence in the Earth's atmosphere, the
passive methods that are applied on a single telescope to overcome atmospheric
image degradation such as speckle interferometry, and various other techniques.
These topics include differential speckle interferometry, speckle spectroscopy
and polarimetry, phase diversity, wavefront shearing interferometry,
phase-closure methods, dark speckle imaging, as well as the limitations imposed
by the detectors on the performance of speckle imaging. A brief account is
given of the technological innovation of adaptive-optics (AO) to compensate
such atmospheric effects on the image in real time. A major advancement
involves the transition from single-aperture to the dilute-aperture
interferometry using multiple telescopes. Therefore, the review deals with
recent developments involving ground-based, and space-based optical arrays.
Emphasis is placed on the problems specific to delay-lines, beam recombination,
polarization, dispersion, fringe-tracking, bootstrapping, coherencing and
cophasing, and recovery of the visibility functions. The role of AO in
enhancing visibilities is also discussed. The applications of interferometry,
such as imaging, astrometry, and nulling are described. The mathematical
intricacies of the various `post-detection' image-processing techniques are
examined critically. The review concludes with a discussion of the
astrophysical importance and the perspectives of interferometry.
