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This paper presents a newly developed adaptive cruise control system with low-speed following capability that is designed to reduce the driver's workload in low-speed driving such as in congested traffic. This system incorporates a forward-looking sensor with a wider range of view for improved detection of a preceding vehicle in the same lane. It also has a control algorithm that achieves natural vehicle behavior without any disconcerting feeling, as a result of being constructed on the basis of analyses of driving behavior characteristics at low speed like that of congested traffic. Evaluations conducted on a driving simulator have confirmed that the system is effective in reducing the driver's workload.