Summary: In view of the weaknesses on evaluation attributes weighting and data mining from the sample data matrix in traditional VIKOR algorithm, an improved VIKOR algorithm is proposed. In the procedure of this algorithm, the combinational weights of evaluation attributes determined by AHP and entropy weighting so as to take subjective experience and objective data law into consideration simultaneously. Moreover, a grey relational coefficient matrix between the selected alternatives and ideal alternative is calculated as the new decision matrix by grey relational analysis, and the selection of alternative achieved. In addition, a two-stage optimizing method for earth-rock allocation based on the improved VIKOR is established for solving the earth-rock allocation problem in hydropower projects. A certain hydropower project is presented to illustrate the proposed method. Results show that it is feasible and effective to be applied to scheme demonstration in hydropower project bidding.