A driver assist system for a vehicle includes an object detection sensor disposed at the vehicle and having an exterior field of view and a receiver operable to receive a wireless communication from a communication device remote from the vehicle. The wireless communication is associated with a driving condition of another vehicle and/or a road condition of interest to the driver of the vehicle. A control is operable to process data captured by the object detection sensor to detect an object exterior of the vehicle. The driver assist system is operable to adjust the data processing responsive at least in part to the received wireless communication. Responsive to the data processing, an alert is operable to alert the driver of the vehicle of a potential hazard and/or a system of the vehicle is operable to control a vehicle function to mitigate or avoid a potential hazard condition.