A vision system for a vehicle includes an imaging sensor and a logic and control circuit, which generates at least one control output for controlling at least one vehicular light of the vehicle. The vision system recognizes veiling glare caused by scattered light in the field of view exterior and forward of the vehicle, with the scattered light being caused by at least one of fog, snow and rain present in the field of view exterior and forward of the vehicle. The vision system, responsive to the recognition of the veiling glare in the field of view exterior and forward of the vehicle, selects an appropriate vehicular lighting configuration so as to reduce the level of the veiling glare. The logic and control circuit may generate a control output for controlling at least one headlight, which may be operable in a high beam mode and a lower beam mode.