Barley is one of the most important cereal crops cultivated over a wider environment in the diverse agro-ecologies in Ethiopia. Study on genotype by environment interaction and stability analysis using thirty barley genotypes was conducted across nine environments in randomized complete block design with three replications to study the magnitude of genotype by environment interaction and to evaluate the stability and adaptability of barley genotypes with high mean yield performance. Additive main effect and multiplicative interaction (AMMI), genotype main effect and genotypes by environment interaction (GGE) and Eberhart and Russell models were employed for stability and adaptability analysis. Thus, AMMI analysis of variance for grain yield showed highly significant (P <= 0.001) differences due to genotypes, environment and genotype by environment interaction. Accordingly, environment accounted for (54.61%) of the total variations followed by genotype (10.69%) and G x E interaction (34.70%). Moreover, a substantial percentage of the G x E interaction sum of squares was explained by IPCA1 (45.48%) followed by IPCA2 (24.65%) and IPCA3 (13.02%) while the first two IPCAs explained 70.13%. Moreover, AMMI and GGE were found to be efficient in grouping the barley growing environment in the central highland, whereas Debre Markos and Bekoji were good representative testing environments. Generally, the current study indicated that 3514-A, 24,990, and 17,148 were desirable genotypes for subsequent breeding line identification and variety development.