A vehicular trailer guidance system includes an electronic control unit (ECU), a plurality of vehicle cameras and at least one trailer camera including a rear trailer camera disposed at a rear portion of a trailer hitched to the vehicle. A display screen is disposed in the vehicle and viewable by a driver of the vehicle. The display screen displays video images derived from captured image data, with the displayed video images including bird's-eye view images of a region at least partially surrounding the vehicle and trailer including an area rearward of the trailer hitched to the vehicle. During a reversing maneuver, and via processing of captured image data, an instruction for maneuvering the vehicle and trailer in reverse toward a target location is generated by the ECU. The generated instruction includes at least an instruction pertaining to steering of the vehicle during the reversing maneuver.