A vehicular sensing system includes a data processor disposed at a vehicle, a camera disposed at an in-cabin side of the vehicle windshield, and a range sensor disposed at the vehicle and having a field of sensing that overlaps a portion of the field of view of the camera. During a driving maneuver of the vehicle, the system detects another vehicle that is located within the radar sensors field of sensing and outside of the camera's field of view and determines movement of the range sensor-detected other vehicle relative to the vehicle. When the range sensor-detected other vehicle enters the field of view of the camera, the system, at least in part via processing at the data processor of image data captured by the camera, determines that the range sensor-detected other vehicle is an object of interest. A system output is provided for use by a driving assist system.