A vehicular vision system includes an exterior lighting assembly that illuminates a field of illumination exterior of a vehicle. A light source controller operates the exterior lighting assembly in a repeating cycle that includes (i) a first illumination period wherein light emitted by the exterior lighting assembly has a first brightness level and (ii) a second illumination period wherein the emitted light has a second brightness level lower than the first brightness level. A camera controller operates a camera to capture image data during at least part of the first illumination period and at least part of the second illumination period. A camera signal processor receives captured image data and processes image data captured by the camera during the first illumination period for (i) display of video images derived from the image data captured by the camera during the first illumination period and/or (ii) for object detection.