AbstractStability analysis plays a crucial role in plant breeding programs aimed at enhancing crop productivity and resilience. Chili yield stability studies based on the interaction of genotype × environment have been widely conducted, as stable yield is very substantial in the formation of sustainably high‐yielding chili varieties. Multi‐environmental trials, conducted across different seasons, locations, or both, are used to assess these G × E interactions through various statistical models. In this context, this review paper explores the understanding of stability analysis in chili breeding, the significance of genotype by environment interaction, and the methods employed in this domain, providing a comprehensive update on recent advancements in stability analysis specific to chili breeding. Furthermore, research studies conducted on stability analysis in chili breeding programs and software used to assess crop stability are featured, shedding light on the application, challenges, and future prospects in the field. The importance of stability analysis in developing stable genotypes and enhancing agricultural productivity amid evolving environmental conditions is herewith underscored. These insights are critical for breeding programs aiming to create robust genotypes capable of adapting to changing environmental conditions, ultimately contributing to more sustainable agricultural practices.