A vehicular interior rearview mirror assembly includes a mirror head adjustable relative to a mounting base. The mirror head accommodates a mirror reflective element having a transflective mirror reflector and a video display device disposed behind the mirror reflective element and operable to display video images derived from image data captured by a camera of the vehicle. The displayed video images are viewable through the transflective mirror reflector by a driver of the vehicle. Responsive to determination of a glare light source present in a field of view of the camera, intensity of a portion of the displayed video images that corresponds to the glare light source is reduced relative to adjacent portions of the displayed video images.