Preheat your oven to 400°F (200°C).
In a large mixing bowl, combine the halved baby potatoes, sliced smoked sausage, olive oil, ranch seasoning mix, garlic powder, onion powder, salt, and pepper. Toss until everything is evenly coated.
Spread the mixture in a single layer on a large baking sheet.
Bake in the preheated oven for 25-30 minutes, or until the potatoes are tender and golden brown, stirring halfway through for even cooking.
Remove the baking sheet from the oven and sprinkle the shredded cheddar cheese over the top. Return to the oven and bake for an additional 5-7 minutes, or until the cheese is melted and bubbly.
Garnish with chopped fresh parsley before serving.