The aim of this research was to examine the genotype‒environment relationship for soybean genotype yield by employing AMMI and GGE biplot analysis and to identify stable genotypes in southwestern Ethiopia. Twenty-three recently introduced soybean genotypes, including two controls, were tested during two seasons, in 2020 and 2021, at four separate test sites. A simple lattice design was used to set up the experiment. Using additive main effects and multiplicative interactions (AMMIs) and genotype main effects and a genotype × environment interaction (GGE), the adaptability and stability of the soybean genotypes were examined. Significant (p < 0.01) genotype, environmental, and genotype × environment interaction effects were found through AMMI analysis. According to the analysis of variance, 56.9% of the soybean yield was explained by the environment, 6.3% by genotype differences, and 36.7% by the GE interaction. The overall yield variability of the soybean genotypes exhibited considerable variation in the first four PCAs. The 10 (Tgx-2010-3F), 16 (Tgx-2007-11F), and 17 (TgX-2007-8F) genotypes were suggested for these particular tested environments because they were adaptive to the PW200, PW21, and AR20 environments according to the AMMI and GGE results. However, the 22 (Tgx-1989-19F) and 5 (Tgx-1987-10F) genotypes were found to be relatively stable and adaptable.