Sulfur dioxide emissions from fossil fuel combustion have been known to cause detrimental health and environmental effects. The currently used hydrodesulfurization (HDS) method employed by refineries has several drawbacks, such as excessive hydrogen consumption, high energy demand, and inability to remove complex organosulfur compounds, which have limited its ability to produce ultralow sulfur diesel (ULSD) at reasonable operating and capital costs. Ionic liquids (ILs) have been widely studied for their potential to replace conventional HDS. However, while their success has been demonstrated at the laboratory level, studies on industrial-scale feasibility and their integration into process simulators such as Aspen Plus are limited. In this work, 26 commercially available ILs have been screened using COSMO-based models and Aspen Plus for the desulfurization of diesel fuel and several possible process configurations have been examined. In particular, the challenge of ionic liquid regeneration, which has largely been ignored in the literature, has also been addressed and several potential regeneration methods have been proposed including extractive regeneration (E-RE) and stripping regeneration using nitrogen and air as stripping media (S-RE). The results indicate that, among the 26 ILs studied, 1-butyl-3-methylimidazolium thiocyanate is the most promising as a solvent for extractive desulfurization (EDS), E-RE, and S-RE. E-RE was found to be more effective for the removal of dibenzothiophene (DBT), while S-RE is more suited to the removal of thiophene and benzothiophene (BT). As a result, an optimized diesel desulfurization process using 1-butyl-3-methylimidazolium thiocyanate has been proposed that achieves ULSD with <10 ppm total sulfur in simulation studies, with complete recycling of the IL and minimal loss of the model diesel.