A method for stitching image data captured by multiple vehicular cameras includes equipping a vehicle with a vehicular vision system having a control and a plurality of cameras disposed at the vehicle so as to have respective fields of view exterior the vehicle. Image data captured by first and second cameras of the plurality of cameras is processed to detect and track an object present in and moving within an overlapping portion of the fields of view of the first and second cameras. Image data captured by the first and second cameras is stitched, via processing provided captured image data, to form stitched images. Stitching of captured image data is adjusted responsive to determination of a difference between a feature of a detected and tracked object as captured by the first camera and the feature of the detected and tracked object as captured by the second camera.