As an unconventional design to alleviate the conflict between left-turn and through vehicles, Continuous Flow Intersection (CFI) has obvious advantages in improving the sustainability of roadway. So far, the design manuals and guidelines for CFI are not enough sufficient, especially for the displaced left-turn lane length of CFI. And the results of existing research studies are not operational, making it difficult to put CFI into application. To address this issue, this paper presents a methodological procedure for determination and evaluation of displaced left-turn lane length based on the entropy method considering multiple performance measures for sustainable transportation, including traffic efficiency index, environment effect index and fuel consumption. VISSIM and the surrogate safety assessment model (SSAM) were used to simulate the operational and safety performance of CFI. The multi-attribute decision-making method (MADM) based on an entropy method was adopted to determine the suitability of the CFI schemes under different traffic demand patterns. Finally, the procedure was applied to a typical congested intersection of the arterial road with heavy traffic volume and high left-turn ratio in Xi’an, China, the results showed the methodological procedure is reasonable and practical. According to the results, for the studied intersection, when the Volume-to-Capacity ratio (V/C) in the westbound and eastbound lanes is less than 0.5, the length of the displaced left-turn lanes can be selected in the range of 80 to 170 m. Otherwise, other solutions should be considered to improve the traffic efficiency. The simulation results of the case showed CFI can significantly improve the traffic efficiency. In the best case, compared with the conventional intersection, the number of vehicles increases by 13%, delay, travel time, number of stops, CO emission, and fuel consumption decrease by 41%, 29%, 25%, 17%, and 17%, respectively.