A vision system for a vehicle includes a plurality of cameras and a processor operable to process image data captured by the cameras to generate images derived from image data captured by at least some of the cameras. The processor generates a vehicle representation. A display screen, viewable by a driver of the vehicle, displays the generated images and the vehicle representation as would be viewed from a virtual camera viewpoint exterior to and higher than the vehicle itself. A portion of the vehicle representation is rendered as displayed to be at least partially transparent to enable viewing at the display screen of an object present exterior of the vehicle that would otherwise be partially hidden by non-transparent display of that portion of the vehicle representation.