The objectives of this study were to identify high yielding and stable medium maturity soybean varieties across environment and examine the influence of genotype × environment interaction (GEI) on grain yield of soybean varieties in western Oromia. Seven early soybean varieties were evaluated at five locations (Bako, Gute, Billo, Chewaka and Uke) using randomized complete block design (RCBD) with three replications for two consecutive years (2016 and 2017). Combined analysis of variance showed that grain yield was significantly (P<0.01) affected by environments, genotypes and GEI. The environment, genotype and genotype by environment interaction accounted for 57.4, 20.9 and 19.8% variations, respectively. The first two principal components (IPCA 1 and IPCA 2) were used to create a two-dimensional genotype and genotype by environment interaction (GGE) biplot and explained 68.9 and 15.6% of the total sums of squares of GEI, respectively. According to the average environment coordination (AEC) views of the GGE-biplot, soybean variety Didhessa and Hawassa-04 were identified as the most stable and high yielding varieties. In addition, Didhessa and Hawassa-04 also showed better stability performance according to AMMI stability value (ASV), genotypic selection index (GSI), Wricke's ecovalence and cultivar superiority measure among the evaluated varieties whereas variety Davis and AFGAT were identified as the least stable and low yielding variety. Therefore, among medium maturing soybean varieties, Didhessa, Hawassa-04 and Cheri were recommended for further production in most soybean growing areas of western Oromia.