A vehicular vision system includes an underbody camera disposed at an underside of a body of a vehicle and viewing a ground surface under the body of the vehicle and being traveled on by the vehicle. The underbody camera captures image data as the vehicle is moving. An illumination source, when operated to emit light, emits near infrared light illuminating the ground surface under the body of the vehicle. An electronic control unit (ECU) is disposed at the vehicle and includes an image processor that processes image data captured by the underbody camera. The underbody camera views at least forward towards a front portion of the underside of the body of the vehicle. The vehicular vision system, via processing at the ECU of image data captured by the underbody camera, determines presence of an object forward of the underbody camera and having height greater than a threshold height.