A vision system for a vehicle includes a forward viewing camera that has a field of view through the windshield of the vehicle and is operable to capture image data. An image processor is operable to process image data captured by the forward viewing camera. Responsive at least in part to processing of captured image data, a road characteristic of a road along which the vehicle is traveling is detected. Responsive at least in part to processing of captured image data, other vehicles exterior the equipped vehicle are detected. Responsive at least in part to processing of captured image data, road curvature of the road along which the equipped vehicle is traveling is determined. Responsive at least in part to processing of captured image data, a school bus stopping signal of a school bus present within the field of view of the forward viewing camera may be detected.