A driver assistance system for a vehicle includes an imager disposed in a housing and a control. The imager includes a CMOS photosensor array of photosensor elements and a lens. With the housing disposed in a vehicle, the imager views forwardly to the exterior of the vehicle through the vehicle windshield at a region of the windshield that is swept by a windshield wiper of the vehicle. The CMOS photosensor array is operable to capture image data. The control includes an image processor disposed in the housing. The driver assistance system identifies objects viewed by the imager via processing by the image processor of captured image data. At least in part responsive to processing of captured image data by the image processor, streetlights present exterior of the vehicle and viewed by imager are discriminated from other objects present exterior the vehicle and viewed by imager.