A new ternary intermetallic compound, namely, YbMn2Sb2, has been synthesized and its magnetic and electrical transport properties have been studied in the temperature range of 2 to 300 K. This compound crystallizes in a trigonal, La2O2S type structure (space group P3bm1, No. 164) and is found to be ferromagnetically ordered at room temperature. The magnetism is attributed to the ordering of Mn sublattice. M5 xray absorption spectrum of YbMn2Sb2 obtained at room temperature suggests that the valency of Yb in this compound is close to 2. Electrical resistivity of this compound is metal like and a positive magnetoresistance of 13 percent is observed at 5 K in an applied field of 9T. Key words Rare earth intermetallics and alloys, Magnetic properties, Xray absorption spectroscopy, Electrical transport.