A driver assist system for a vehicle includes at least one non-visual sensor and a color video rear backup camera having a field of view rearward of the vehicle, with the field of view of the camera encompassing a ground area to the rear of the vehicle. An image processor processes image data captured by the camera. A video display screen is viewable by a driver of the vehicle. During a reversing or parking maneuver of the vehicle, images derived, at least in part, from image data captured by the camera are displayed by the video display screen to assist the driver in operating the vehicle. At least one indication is provided to a driver of the vehicle, at least in part, responsive to detection by the non-visual sensor of at least one object external of the vehicle.