This paper first starts by analyzing the environmental design problems of rural settlements and constructs an evaluation system of environmental design indicators of rural settlements based on the AHP-TOPSIS-POE model. Then the index weights are calculated by using the hierarchical analysis method, the priority ranking of index weights is realized by the TOPSIS method, and the feedback analysis of index evaluation is carried out based on POE theory. Finally, the validity of this paper’s index system is verified and analyzed with the example of a new rural construction and several rural residential area environmental design schemes. The results show that humanistic respect, square space and landscape greenery have weights of 0.5819, 0.5434 and 0.4463, respectively, in the environmental design of rural residential areas, and the index system can rank the advantages and disadvantages of environmental design solutions, and then provide effective environmental design solutions to improve villagers’ happiness.