A driver assist system for a vehicle includes a camera and a control having an image processor, which processes image data captured by the camera. At least one non-visual sensor is operable to detect objects external of the vehicle and to provide non-visual sensor data to the control. During at least one of (i) a reversing maneuver and (ii) a parking maneuver, images derived, at least in part, from image data captured by the camera are displayed by a video display screen that is viewable by the driver to assist the driver in operating the vehicle. The control provides an indication to the vehicle driver, with the indication including at least one of (i) a visual indication displayed by the video display screen and (ii) an audible indication. The indication is provided, at least in part, responsive to detection by the non-visual sensor of an object external of the vehicle.