A driver assistance system for a vehicle includes a forward facing camera and a processor operable to process image data captured by the camera. Responsive to processing of captured image data, the driver assistance system is operable to determine a lane along which the vehicle is traveling and to detect oncoming vehicles approaching the vehicle in another lane that is to the right or left of the determined lane along which the vehicle is traveling. The driver assistance system is operable to control, at least in part, a light beam emanating from a headlamp of the vehicle and adjusts the light beam emanating from the headlamp to limit directing beam light towards the eyes of a driver of the detected oncoming vehicle. Responsive to processing of captured image data, the driver assistance system is operable to provide lane departure warning to a driver of the vehicle.