A vision system for a vehicle includes an imaging device, a camera controller, a display device and a display controller. The camera controller and the display controller share a common processor. The vision system is operable to adjust a displayed image responsive to a signal from an auxiliary sensing system. The vision system, responsive to object detection by a sensor, is operable to (a) provide enhanced imaging of the detected object, (b) provide enhanced processing of at least a portion of captured image that corresponds to the region of the exterior scene at which an object is detected, (c) adjust the display device to enhance displayed images of a detected object, and/or (d) adjust the display device to enhance display of at least a portion of a captured image that corresponds to the region of the exterior scene at which the object is detected by the sensor.