Abstract: The modern investment portfolio theory represented by Mean-Variance model builds upon the classic expected utility theory, which does not take behavioral features and psychological perception of risk into consideration of bounded rational's portfolio selection. Prospect theory and lower partial moment model widely applied in behavioral portfolio selection model as prospect theory involves the behavioral features of bounded rational into value function, while measuring risk with the lower partial moment method is more aligned with actual personal psychological perception of risk. Under behavioral portfolio theory framework, the prospect value and lower partial moment-based portfolio selection model combines investor's value and risk perception, integrates the tri-reference point theory with reference dependence effect by using interval number, calculates portfolio risk with lower partial secondary moment based on prospect value and solve the optimization problem with continuous ordered weighted operator. The empirical research demonstrates that the efficient frontier of the prospect value and lower partial moment based portfolio selection model is similar to traditional model with good properties. The prospect value and lower partial moment-based portfolio selection model develops the portfolio selection theory.