As an extended form of intuitionistic fuzzy set, the theory of interval-valued intuitionistic fuzzy set (IVIFS) can describe fuzziness more flexibly. This study aims to develop a group decision-making model based on the distance measure, Yager power aggregation operators and the possibility measure in the context of IVIFSs. For this purpose, new distance measure is proposed to quantify the dissimilarity between two IVIFSs. In addition, comparison with existing distance measures is performed to illustrate the efficiency of introduced measure. Combining the Yager’s triangular norms with the proposed distance-based power operators, a series of interval-valued intuitionistic fuzzy (IVIF) Yager power aggregation operators are introduced with their desirable properties. Moreover, a possibility measure is developed for pairwise comparisons of IVIFSs, which overcomes the shortcomings of existing IVIF-score function, IVIF-accuracy function, and IVIF-possibility measures. The developed possibility measure is further utilized to compute the weights of criteria. To prove the practicality and effectiveness of introduced model, it is applied to a case study of manufacturing plant location selection problem with IVIF information. Finally, sensitivity and comparative analyses are carried out to test the stability and robustness of the proposed method under the setting of IVIFSs.