A method for assisting a driver of a vehicle towing a trailer includes providing a plurality of cameras and processing image data captured by the cameras while the vehicle is towing the trailer. Responsive to processing of captured image data, images are generated for display at a video display screen to provide a top view of the vehicle towing the trailer to the driver to assist maneuvering the vehicle towing the trailer. A dynamic vehicle and trailer icon is generated and displayed at the video display screen along with display of the top view of the vehicle towing the trailer. The dynamic vehicle and trailer icon comprises a top view representation of the vehicle and the trailer with at least one projected path for the vehicle towing the trailer so the driver can readily determine where the trailer will travel when the driver turns a steering wheel of the vehicle.