This chapter aims to select the best biodiesel for a diesel power generator considering sustainable criteria. The study proposes the application of an almost unexplored prospect theory-based multi-criteria decision-making (MCDM) method, popularly known as Tomada de Decisao Interativa Multicriterio (TODIM). Several conflicting criteria including calorific value, cetane number, density, viscosity, flash point, and pour point are considered as the most predominant criteria, while pongamia oil, jatropha oil, cotton seed oil, linseed oil, madhuca indica oil, olive oil, and sunflower oil are among the considered biodiesel alternatives. Results show that madhuca indica oil scored the highest value followed by others. The study is also complemented by an analysis of the sensitivity of the numerical results obtained to show the robustness of the proposed method.