A hydraulic system is disclosed. The hydraulic system may have a pump, a lift actuator, a lift valve arrangement, a tilt actuator, a tilt valve arrangement, and a tilt angle sensor configured to generate a first signal. The hydraulic system may further have at least one operator interface device movable to generate a second signal indicative of a desired lift velocity and a third signal indicative of desired tilt velocity, and a controller. The controller may be configured to command the lift valve arrangement to meter pressurized fluid based on the second signal, command the tilt valve arrangement to meter pressurized fluid based on the third signal and, when the first signal indicates that the actual tilt angle has entered a specified range of tilt angles during lifting, command the tilt valve arrangement to meter pressurized fluid based on the second signal as the actual tilt angle remains within the specified range.