Foundation materials are critical for bearing the loads of structures, whether they are constructed using timber, concrete, or steel. While concrete is frequently chosen for its exceptional load-bearing capabilities, growing concerns about its environmental impact and sustainability are leading to a re-evaluation. The challenge is to choose foundation materials that maintain structural integrity while reducing environmental effects, all within the framework of existing timber structural codes. This study explores sustainable timber foundation options for two-story houses. It compares timber pile foundations with different lengths (0.3, 0.5, 1 m) and diameters (Class A, B, C) as per ASTM-D-25, against concrete shallow foundations. The assessment includes structural analyses and Life Cycle Assessments across extraction, processing, transportation, construction, and waste disposal stages. The findings indicate that timber piles, when compared to concrete shallow foundations, exhibit both environmental sustainability and structural feasibility. Through TOPSIS analysis, the scenario featuring 0.3 m length and Class C, 304.8 mm diameter timber piles are identified as the optimal choice for foundation construction, primarily due to its exceptional structural stability. Timber piles prove superior to concrete shallow foundations in addressing vertical displacement, and they showcase notable environmental benefits, displaying a Global Warming Potential that is 13.54 times lower, amounting to 1.2E+02 kgCO2-Eq. Despite concrete foundations demonstrating twice the rigidity in horizontal displacement under heavy wind loads, timber piles remain a more suitable option, as their horizontal displacement falls within allowable limits, specifically at 0.14 mm.