Tef [Eragrostis tef (Zucc.)Trotter]) is one of the most important cereal crops grown in Ethiopia. Tef production has been partly constrained by low yield and less stability of the genotypes under cultivation. Field experiments were carried out in Halaba, Loka Abaya, Bensa and Areka, South Ethiopia, from August to November, during 2016 and 2017 main cropping seasons, in order to estimate yield stability and the association between AMMI analysis and other stability parameters. Experiments were laid out in randomized complete block design with three replications using fourteen improved tef genotypes. Mean yield for Halaba, Loka Abaya2016, Loka Abaya2017, Bensa, Areka2016 and Areka2017 was 0.99, 0.45, 0.48, 1.50, 1.62 and 0.77 tons/ha, respectively. Genotypes Amarach, Boset, Simada, and Tseday exhibited high mean yield of 1.09, 1.10, 1.07 and 1.07 tons/ha, respectively. AMMI stability value (ASV) ranged from 0.17 (genotype Lakech) to 1.40 (Amarach); yield stability index (YSI) from 7 (Lakech) to 25 (Quncho); and superiority measure (P_i) from 0.015 (Boset) to 0.145 (Dega Tef). Rank correlation of yield with P_i (r = 0.97, p < 0.01), ASV with W_i and δ_i² (r = 0.85, p < 0.01) and that between W_i and δ_i² (r = 1.00, p < 0.01) was high. Rank correlation of YSI with yield (r = 0.57, p < 0.05), ASV (r = 0.75, p < 0.01), and P_i (r = 0.68, p < 0.01) and W_i and δ_i² (r = 0.67, p < 0.01) was also positive. The present study showed that genotypes Etsub, Simada and Tseday would be recommended for high yield and wide adaptation, and ASV would be used alone or jointly with YSI, W_i and δ_i² for ranking of genotypes.