A camera calibration system of a vehicle includes a camera disposed at a vehicle and having a field of view exterior of the vehicle. The camera is operable to capture image data. An image processor operable to process image data captured by the camera. The camera calibration system is operable to generate camera calibration parameters utilizing a bundle adjustment algorithm. Responsive to image processing of captured image data during movement of the vehicle along an arbitrary path, and responsive to the bundle adjustment algorithm, the camera calibration system is operable to calibrate the camera. The bundle adjustment algorithm may iteratively refine calibration parameters starting from a known initial estimation.