A vision system for a vehicle includes a camera disposed at the vehicle and having a field of view exterior of the vehicle. A control, via processing of image data captured by the camera, is operable to detect the presence of a vehicle and a blinking light source in the field of view of the camera. The control, via processing of captured image data, determines an angle of the detected vehicle relative to the equipped vehicle and, responsive to determination of the angle, determines a middle region of an end of the detected vehicle. Responsive to detection of the vehicle and the blinking light source, the vision system is operable to determine whether the detected blinking light source is a left turn signal indicator of the detected vehicle or a right turn signal indicator of the detected vehicle.