A camera vision system for a vehicle includes a rear backup video camera at a rear portion of the vehicle. A display device includes a video screen operable to display video images captured by the camera for viewing by a driver of the vehicle. Video images captured by the camera are displayed by the display device when the vehicle transmission is shifted into reverse gear. An overlay is displayed with captured video images to assist the driver during the rear backup maneuver. A control includes an image processor that image processes captured video images in order to detect objects that are within the rearward field of view of the camera. The vehicle is further equipped with a sensor system selected from the group consisting of (i) a radar sensor system and (ii) an ultrasonic sensor system, and the sensor system monitors a region external to the vehicle.