A system and method for adaptive cruise control with proximate vehicle detection are disclosed. The example embodiment can be configured for: receiving input object data from a subsystem of a host vehicle, the input object data including distance data and velocity data relative to detected target vehicles; detecting the presence of any target vehicles within a sensitive zone in front of the host vehicle, to the left of the host vehicle, and to the right of the host vehicle; determining a relative speed and a separation distance between each of the detected target vehicles relative to the host vehicle; and generating a velocity command to adjust a speed of the host vehicle based on the relative speeds and separation distances between the host vehicle and the detected target vehicles to maintain a safe separation between the host vehicle and the target vehicles.