A vehicular imaging system includes an imaging device comprising an array of photo-sensing pixels and a control having an image processor operable for processing image data captured by the imaging device. The control utilizes edge detection in processing captured image data by the image processor for detecting objects present exterior of the vehicle. Responsive at least in part to processing at the control of captured image data by the image processor, the control detects an object of interest present in the field of view of the imaging device. In detecting the object of interest present in the field of view of the imaging device and responsive at least in part to processing at the control of captured image data by the image processor, shadows present in the field of view of the imaging device are discerned and distinguished from the object of interest.