A vision system for a vehicle includes side and rear cameras that are operable to capture image data. The rear camera is configured to be disposed at a rear portion of the vehicle so as to have a rearward field of view and the side cameras are configured to be disposed at respective side portions of the vehicle so as to have respective sideward and rearward fields of view. The rear camera has a rear imager and a wide angle lens, which is disposed at the rear imager with its center axis offset from a center region of the rear imager so as to be disposed at and to image at an upper region of the rear imager. An image processor processes captured image data to merge captured image data to provide a panoramic image for display to the driver during a reversing maneuver of the vehicle.