Field experiment was conducted to assess the extent of genetic variability and heritability in soybean genotypes for yield and its related traits. A total of thirty six soybean genotypes were evaluated using simple lattice design at Fedis eastern Ethiopia. Data were recorded for major quantitative traits and analyzed using appropriate statistical R-software. Analysis of variance revealed that the genotypes were highly significant for all the traits studied, indicating the existence of considerable magnitude of variability. High broad sense heritability estimate coupled with relatively high genetic advance as percentage of mean were computed for pods/plant, plant height, grain yield and primary branches/plant. Moderate to high genetic advance as percent of mean was estimated from the present result days to maturity, primary branches/plant, plant height, pods/plant, seeds/pod, hundred seeds weight and grain yield were recording high genetic advance as percent of mean, while days to flowering and secondary branches/plant estimated moderate genetic advance as percent of mean. High values of phenotypic coefficient of variation (PCV), genotypic coefficient of variation (GCV), broad sense heritability (H2), and genetic advance as percent of mean (GAM) were estimated for plant height, primary branches per plant, pod per plant, seeds per pod, and grain yield indicating the ease of direct selection for the improvement of these traits. Hence, selection for these traits is likely to be effective as high heritability values were associated with high genetic advance as percent of means in the improvement of the performance of the soybean genotypes. As a result breeder can improve the tested soybean genotypes through plant height, number of pods/plant, number of primary branches/plant and grain yield.