Systems and methods are provided for controlling deceleration fuel shut off (DFSO) in response to an external object or location, such as a target vehicle. In one example, a method may include, while operating an engine in DFSO, determining a rate of change of a range to the target vehicle, and commanding an exit from the DFSO based on the range rate of change. By exiting the DFSO based on the range rate of change, torque lash experienced by a driver may be correspondingly reduced as compared to exiting the DFSO based upon, for example, one or more powertrain operating conditions.