Amblyopia, a disorder in which vision through one of the eyes is degraded, arises because of deficient processing of information by the visual system. Amblyopia often develops in humans after early misalignment of the eyes (strabismus), and can be simulated in macaque monkeys by artificially inducing strabismus. In such amblyopic animals, single-unit responses in primary visual cortex (V1) are appreciably reduced when evoked by the amblyopic eye compared to the other (fellow) eye. However, this degradation in single V1 neuron responsivity is not commensurate with the marked losses in visual sensitivity and resolution measured behaviorally. Therefore, in this study we explored the idea that changes in the pattern of coordinated activity across a population of V1 neurons may additionally contribute to degraded visual representations in amblyopia, potentially making it more difficult to read out visually evoked activity to support perceptual decisions. We recorded the activity of V1 neuronal populations in three macaques (M. nemestrina) with strabismic amblyopia, and in one control. As reported previously, overall activity evoked through the amblyopic eye was diminished. We studied the functional interactions among V1 neurons responding to fellow or amblyopic eye stimulation by measuring spike count correlation in responses of pairs of neurons to identical visual stimuli. We found elevated correlation in neuronal responses to stimuli shown to the amblyopic eye that was independent of contrast level, unlike the fellow eye or typical cortex. Furthermore, the magnitude of this difference in correlation varied with the tuning and eye preferences of the neurons. As expected, these changes in strength and pattern of correlated activity diminished the ability of a standard decoding analysis to correctly identify visual stimuli. Overall, our results suggest that a part of the diminished visual capacity of amblyopes may be due to changes in the patterns of functional interaction among neurons in the primary visual cortex.