This paper explores ethno-villages in Bosnia and Herzegovina as an important element of rural and cultural tourism. The attractiveness of natural and cultural heritage is very important for sustainable rural tourism development. In order to improve the process of decision making to enable the sustainable development of ethno-villages, a multi-criteria assessment model has been developed. The methodology is based on qualitative modeling using a multi-criteria analysis via the DEXi software. The model is based on hierarchical relations consisting of three main criteria that are the basis of sustainable tourism development: economic, social, and environmental criteria. The ultimate goal of the model in this study was to evaluate ethno-villages, namely six ethno-villages in Bosnia and Herzegovina. The results of the study show how ethno-villages contribute to sustainable development.