Hilly regions have attracted significant interest in recent times due to the growing demand for infrastructure facilities. Identifying suitable land for sustainable building construction poses a formidable challenge in these areas, given the topographical differences, ecological sensitivity, and harsh climatic conditions. Choosing an environmentally friendly construction site for a building entail evaluating a variety of factors, each carrying distinct levels of significance or proportional impact. To prevent the omission of crucial site selection factors, it is imperative to establish a methodology for determining the optimal site for constructing a building. For assessing the environmentally sustainable site suitability of building construction for sustainable development in hilly areas, Geographical Information System (GIS) based Multi-Criteria Decision-Making (MCDM) approach that integrated the interrelation of environmental, physical, and socioeconomic criteria using Multi Influencing Factor (MIF) and assigned ranking based on suitability index using Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). According to the analysis, 7.65 and 5.32 of area encompasses in very high and high suitability, whereas 7.00%, 6.51%, and 73.51% encompassing in moderate, low, and very low suitability, respectively. The findings indicate that unsuitable land falling in high vegetation and having less drainage density, reveals that the utilization of integrated MIF and TOPSIS plays a crucial role in environmental conservation amid considerable uncertainty, these approaches offer valuable support to policymakers and administrators for informed decision-making in strategic initiatives and future planning.