The stability of squashed Kaluza-Klein black holes is studied. The squashed Kaluza-Klein black hole looks like five dimensional black hole in the vicinity of horizon and four dimensional Minkowski spacetime with a circle at infinity. In this sense, squashed Kaluza-Klein black holes can be regarded as black holes in the Kaluza-Klein spacetimes. Using the symmetry of squashed Kaluza-Klein black holes, $SU(2)times U(1)simeq U(2)$, we obtain master equations for a part of the metric perturbations relevant to the stability. The analysis based on the master equations gives a strong evidence for the stability of squashed Kaluza-Klein black holes. Hence, the squashed Kaluza-Klein black holes deserve to be taken seriously as realistic black holes in the Kaluza-Klein spacetime.