Predictive processing theories state that our subjective experience of reality is shaped by a balance of expectations based on previous knowledge about the world (i.e., priors) and confidence in sensory input from the environment. Divergent experiences (e.g., hallucinations, synaesthesia) are likely to occur when there is an imbalance between one’s reliance on priors and sensory input. In a novel theoretical model, we hypothesize that predictable divergent experiences are associated with natural (maladaptive priors) or induced (environmental) prior/sensory imbalances: overly strong or inflexible high-level priors (beliefs) are associated with low sensory confidence, which can result in reality discrimination issues (characteristic of psychosis); overly strong or inflexible low-level priors (e.g., sensory expectations) are associated with high sensory confidence, but can result in abnormal sensory sensitivities and persistent divergent percepts (characteristic of synaesthesia). Whether different divergent experiences manifest with dominantly sensory (e.g., hallucinations) or non-sensory characteristics (e.g., delusions), depends on mental imagery ability, which is a spectrum from aphantasia (absent or weak imagery) to hyperphantasia (extremely vivid imagery). We argue that imagery is critically involved in shaping the sensory richness of divergent perceptual experiences. These ideas are expressed formally in a generalized linear mixed model, which takes the interaction between three factors that contribute to divergent perception: a maladaptive use of priors in interpreting sensory input, individual level of sensory confidence, and mental imagery vividness. We provide evidence for this model from previous research, and deliver predictions for future research.