A trailer assist system for a vehicle includes a plurality of sensors disposed at a vehicle, a trailer sensor disposed at a rear portion of a trailer and having a field of sensing at least rearward of the trailer, and a control having a processor operable to process data captured by the sensors. A display screen displays an area rearward of the trailer. Responsive to a user input selecting a target area present in the displayed image, the control, via processing of data captured by the sensors, is operable to determine a path of travel for the vehicle and trailer to follow to maneuver the vehicle and trailer toward a target location represented by the selected displayed target area. The control, responsive to determination of the path of travel, controls at least steering of the vehicle to maneuver the vehicle and trailer along the determined path of travel.