A multi-camera vision system for a vehicle includes a rear backup camera, a forward viewing camera that views through the vehicle windshield, and a central data processor disposed in the vehicle. Captured image data provided to the central data processor is processed to detect objects that are within the field of view of the forward viewing camera and/or the field of view of the rear backup camera. Captured radar data is also provided to the central data processor and, via processing of captured image data and captured radar data, a potential hazard is determined to exist. A display device includes a video screen that displays video images captured by the rear backup camera for viewing by a driver of the vehicle during the rearward maneuver of the vehicle, and an overlay overlays the displayed video images captured by the rear backup camera during the rearward maneuver of the equipped vehicle.