Mental imagery interferes with perception. This, an example of the 'Perky effect', was studied for vernier acuity. Mean accuracy for reporting the offset of vertical line targets declined from 80% to 65% when subjects were requested to imagine vertical lines near fixation. Images of horizontal lines or of a grey mist in the fixation region lowered accuracy to a similar extent. However, accuracy was barely affected when the image was requested 1.5 deg or more from the target. The Perky effect remained strong for at least 4 s after an instruction to 'clear' the image away. The results were not due to imagery-induced changes in fixation, pupil diameter, or accommodation, or (at least primarily) to central attentional or decisional factors. Rather, imagery produces a local, pattern-insensitive, and relatively long-lasting reduction in visual sensitivity. The sensitivity loss may be mimicked by a 0.24 log unit reduction in target energy.