Genotype x location interaction effects are of special interest for breeding programs to identify adaptation targets, adaptive traits and test sites. In order to identify stability and adaptability of small red bean cultivars sixteen genotypes were evaluated at the mid altitude of bale zone southeastern Ethiopia during main season 2015 and 2016. The cultivars were arranged in a randomized complete block design with three replications at each site of Goro, Ginir and Dellomena. The combined analysis of variance for mean grain yield revealed significant variation for genotypes, environment and GE interaction. The analysis of variance for the AMMI (Additive Main effects and Multiplicative Interaction) revealed that significant variation for genotypes, environment and GE interaction. From this analysis 42.53% was explained by AMMI 1 followed by AMMI 2 (28.29%), AMMI 3 (19.76%) and AMMI 4 (7.10%) of the interaction sum of squares. Therefore, the first two AMMI components justified 70.82% of the GE interaction sum of squares. The stability parameters regression coefficient (bi), deviation from regression analysis and ASV identifies G7, G6, G11, G1 and G12 showed the least value for ASV indicating as these genotypes showed stable performance over the sites. However stable cultivar wouldn't necessarily gave the highest seed yield. Therefore based on Genotype Selection Index (GSI) which considers both the ASV and the mean yield, G8, G3, G6 and G7 were the most stable genotypes identified over the tested environments. Therefore, out of the tested genotypes, G8 and G3 were identified as stable cultivar to be selected for possible release during the coming cropping seasons.