The country legend, 74, has not attended any of the recent marches following the death of George Floyd, an unarmed African-American man who was killed in police custody, but told Billboard magazine that she is on the side of protestors.
"I understand people having to make themselves known and felt and seen," Parton said.
"And of course Black lives matter. Do we think our little white a**es are the only ones that matter? No!"
The singer also addressed the decision to change the name of The Dixie Stampede, a Civil War-themed dining attraction at her Dollywood theme park in Tennessee, with another location in Missouri.
The attraction became known as Dolly Parton’s Stampede in 2018 following concerns over its negative associations with the Confederacy .
"There's such a thing as innocent ignorance, and so many of us are guilty of that," she told Billboard.
The singer discussed the decision to rename a Dollywood attraction (John Lamparski/Getty Images)
"When they said 'Dixie' was an offensive word, I thought, 'Well, I don't want to offend anybody. This is a business. We'll just call it The Stampede.'
“As soon as you realise that [something] is a problem, you should fix it. Don't be a dumba**. That's where my heart is.
“I would never dream of hurting anybody on purpose."
Parton recently announced that she is set to release a Christmas album later this year, titled A Holly Dolly Christmas, her first festive album in 30 years.
The new record, which comes out in October, will see the musician duet with stars including Miley Cyrus, Willie Nelson, Jimmy Fallon and Michael Bublé.