A vision system of a vehicle includes at least one camera disposed at a vehicle and having a field of view exterior of the vehicle. The at least one camera is operable to capture image data. A display disposed in the vehicle and viewable by a driver of the vehicle. The display is operable to display images derived from image data captured by the at least one camera. The display is a virtual retinal display that displays images at a virtual distance from the driver. When viewing images displayed by the virtual retinal display, the driver has the impression that the virtual distance from the driver's eyes to the displayed images is greater than the distance from the driver's eyes to the virtual retinal display.