A vehicular vision system includes a camera disposed at an exterior portion of a side of a vehicle and viewing at least sideward and rearward of the equipped vehicle. A video display screen is disposed in an interior cabin of the equipped vehicle and displays video images derived from frames of image data captured by the camera. When no other vehicle is detected in another traffic lane, the video display screen displays video images representative of a first portion of the exterior scene viewed by the camera. Responsive to determination that another vehicle is in the other traffic lane and approaching from rearward of the equipped vehicle, the video display screen displays video images representative of a second portion of the exterior scene that includes the determined other vehicle. Responsive to detection of the other vehicle, the video display screen displays a graphic overlay overlaying the displayed video images.