An investigation on assessment of heterosis, combining ability and G×E interaction in respect of ethanol yield and its attributing traits was carried out with 30 test hybrids of sweet sorghum developed by crossing five (5) low-sugar female lines with six (6) high-sugar male lines in Line x Tester mating design during kharif season of 2010 over three locations. The hybrids viz., NSS 1007A × CSV 19SS and RS 1220A × SSV 74 are highly suitable for heterosis breeding as they exhibited significant positive standard heterosis for ethanol yield and its contributing traits. The parents, RS 1220B, CSV 19SS and SSV 74 were found to be good general combiners, while the cross combinations viz., NSS 1007A × CSV 19SS and NSS 1016A × SSV 84 showed good specific combining ability coupled with high per se performance for ethanol yield hence highly suitable for heterosis breeding. Based on stability, the hybrids viz., NSS 8A × SSV 84 and NSS 1007A × CSV 19SS for ethanol yield, juice yield and total biomass were found to be stable with well adaptation to all environments whereas NSS 8A × CSV 19SS showed specific adaptation to favourable environments for the traits like ethanol yield, juice yield, total soluble solids and total sugar index while NSS 8A × SSV 74 showed specific adaptation to unfavourable environments for ethanol yield. The hybrid NSS 1007A × CSV 19SS exhibited high mean, significant positive standard heterosis and sca effects along with bi near to unity and non-significant deviation from regression.