An system and method of operating an adaptive cruise control system for a vehicle. In one example, the system includes a rearward facing sensor, a speed control, and a controller. The controller receives at least one parameter indicative of a road condition or a traffic condition. The controller then activates a coasting mode based on the at least one parameter. The controller receives a signal from the rearward facing sensor indicative of a presence of a target vehicle positioned behind the host vehicle and restricts the coasting mode when the signal from the rearward facing sensor detects the target vehicle is positioned behind the host vehicle. The controller performs coasting via the speed control when the signal from the rearward facing sensor does not detect the target vehicle positioned behind the host vehicle and when the coasting mode is active.