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On Wednesday, the Hall announced the inductees for 2022, which also included performers and first time nominees: Duran Duran, Eminem, Eurythmics, Lionel Richie and Carly Simon.
The criteria for nomination is that acts must have released their first record 25 years before induction.
Parton had been nominated in February, but turned it down in March when she wrote in an Instagram post: “Even though I am extremely flattered and grateful to be nominated for the Rock & Roll Hall of Fame, I don’t feel that I have earned that right.
“I really do not want votes to be split because of me, so I must respectfully bow out.”
Last week, however, the Jolene singer changed her tune and revealed she would now accept the induction if she made the list.
After the Rock Hall confirmed that she could still be inducted despite her statement, she gave an interview saying: “Well, I’ll accept gracefully.'
The 76-year-old star added to NPR’s Morning Edition: “When I said that, it was always my belief that the Rock & Roll Hall of Fame was for the people in rock music, and I have found out lately that it’s not necessarily that...
"I’ll just say thanks and I will accept it because the fans vote.”
While rapper Eminem, who recently shared that he is celebrating 12 years of sobriety, joins Parton in the Class of 2022 this won’t be his first time at a Rock Hall ceremony.
Last year, he performed Rock the Bells with LL Cool J at the 2021 induction ceremony. In 2009, he gave the speech inducting Run-DMC into the Rock Hall.
Judas Priest and producers Jimmy Jam and Terry Lewis will receive the Musical Excellence Award.
That gong is awarded to “artists, musicians, songwriters and producers whose originality and influence creating music have had a dramatic impact on music”, according to the Hall of Fame.
Veteran singer and actor Harry Belafonte, 95, and the late US blues musician Elizabeth Cotten will also be honoured with the Early Influence Award.
The Hall said of the latest artists: “This award shall be given to a performing artist or group whose music and performance style have directly influenced and helped inspire and evolve rock & roll and music that has impacted youth culture.”
Parton, who is an actor and singer/songwriter, has had 110 career-charted singles over the past 40 years.
She's also composed over 3,000 songs, including I Will Always Love You, Jolene, Coat of Many Colours, and 9 to 5.
The Rock & Roll Hall of Fame 2022 induction ceremony will take place on 5 November at the Microsoft Theater in Los Angeles.
Watch: Dolly Parton honours 'sister' Naomi Judd with emotional tribute