We present a self-dual N = 1 supersymmetric Dirac-Born-Infeld action in three dimensions. This action is based on the supersymmetric generalized self-duality in odd dimensions developed originally by Townsend, Pilch and van Nieuwenhuizen. Even though such a self-duality had been supposed to be very difficult to generalize to a supersymmetrically interacting system, we show that Dirac-Born-Infeld action is actually compatible with supersymmetry and self-duality in three-dimensions. The interactions can be further generalized to arbitrary (non)polynomial interactions. As a by-product, we also show that a third-rank field strength leads to a more natural formulation of self-duality in 3D. We also show an interesting role played by the third-rank field strength leading to a supersymmetry breaking, in addition to accommodating a Chern-Simons form.