die Laterne
streetlight
A light fixed to a pole for lighting streets, paths, or squares in the dark; a streetlamp.
Die einzige Laterne in der kleinen Gasse flackerte.
The only streetlight in the small alley flickered.

lantern / streetlight
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streetlight
A light fixed to a pole for lighting streets, paths, or squares in the dark; a streetlamp.
Die einzige Laterne in der kleinen Gasse flackerte.
The only streetlight in the small alley flickered.

Context tells you whether a streetlight (m01) or a portable lantern (m02) is meant. In connection with streets, squares, or darkness, it usually means a streetlight. If it is about children, festivals, or parades, it means the portable lantern.
Unter der Laterne wartete eine Gestalt im Schatten.
A figure was waiting in the shadows under the streetlight.
The expression 'eine Laterne haben' colloquially means to be very drunk. The phrasing is fixed and is often intensified with adjectives like 'ordentlich' (proper) or 'gewaltig' (huge).
Er kam von der Party nach Hause und hatte eine gewaltige Laterne.
He came home from the party and was extremely drunk.
The portable lantern has special cultural significance in Germany because of the lantern parades for Saint Martin in November. Children make colorful paper lanterns for them and sing songs.
Im Kindergarten basteln alle Kinder eine Laterne für den Martinsumzug.
At kindergarten, all the children are making a lantern for the St. Martin's parade.
When a streetlight is meant, it is often referred to more specifically as 'Straßenlaterne' (streetlight). Common verbs are 'leuchten' (to shine), 'flackern' (to flicker), or 'angehen' (to come on).
Pünktlich um 21 Uhr gehen in dieser Straße die Laternen an.
Right on time at 9 p.m., the streetlights on this street come on.
light
'das Licht' and 'die Laterne' can both have to do with lighting. 'Licht' is more general: it can mean the brightness itself, or also a simple light source, for example a lamp. 'Laterne' is more specific. It is a particular kind of light, often outdoors on the street or portable with a casing. Learners may confuse the words because a 'Laterne' produces light. But not every 'Licht' is a 'Laterne'. If you just mean brightness, use 'Licht'. If you mean the object, especially outdoors or in a lantern parade, use 'Laterne'.

Vor dem Bahnhof stand Herr Krüger unter einer Laterne, weil es stark regnete.
In front of the train station, Mr. Krüger stood under a streetlight because it was raining heavily.
Im Flur war kein Licht, deshalb suchte ich den Schalter an der Wand.
There was no light in the hallway, so I looked for the switch on the wall.