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Genotype-by-environment interaction (G×E) is commonly observed in perennial ryegrass species and significantly impacts dry matter yield (DMY) performance across environments. Variation in DMY of perennial ryegrass cultivars and their distinct responses to different environments directly influence the profitability of the Australian dairy industry. In this study, we implemented a separate two-way factor analytic strategy to fit multi-environment-multi-harvest data collected from 18 trials spanning 14 years to account for the G×E effects across complex pasture environments in south-eastern Australia to achieve accurate DMY predictions. Three mega-environments were identified, and the seasonal and environmental DMYs of 126 cultivars or breeding lines (defined by a combination of varieties and endophytes) were predicted. Statistical differences in DMY performance and crossover G×E effects in cultivar rankings were observed among the three mega-environments. Several high-yielding cultivars specific to each mega-environment were also identified. The analysis demonstrated the importance of accounting for G×E effects when predicting the DMY of perennial ryegrass and highlighted the potential for identifying high-yielding cultivars specific to mega-environments. The research rationalizes implementing an appropriate independent pasture trialling system to generate necessary data for the dairy industry and could further facilitate dairy farmers to select suitable cultivars based on their specific environments and perennial ryegrass breeders when accounting for the genetic relationship of cultivars. • G×E impacts perennial ryegrass cultivar rankings and breeding strategies. • Factor analytic model is a robust tool for analysing G×E. • Analysing G×E provides accurate DMY prediction and facilitates identifying high-yielding cultivars. • Identified 3 mega-environments and predicted DMYs for 126 cultivars. • Appling an independent trialling system is necessary to identify environmental-specific cultivars. [ABSTRACT FROM AUTHOR]