Agile-Stage-Gate is a hybrid product development model that integrates elements of both Agile and Stage-Gate to help companies realize the strengths of both. Recent studies show positive results in manufacturing companies, although SMEs are notably absent despite being the majority. This paper reports results of a test of the model in three deliberately chosen manufacturing SMEs. Results were improved: time to market, overall new product process, higher success rate. Agile required adaptations, and novel solutions were found by the test firms. The positive results suggest that Agile-Stage-Gate must be considered as a recommended product development approach in SME manufacturers.