2005–2020: Touring and holiday album
Parton earned her second Academy Award nomination for Best Original Song for "Travelin' Thru", which she wrote specifically for the feature film Transamerica (2005). Because the song and film centered on a transgender woman, Parton received death threats. She returned to number one on the country chart later in 2005 by lending her harmonies to Brad Paisley's ballad, "When I Get Where I'm Going". In September 2007, she released her first single on her own label, Dolly Records, "Better Get to Livin'", which peaked at number 48 on Billboard's Hot Country Songs chart.
"Better Get to Livin'" was followed by the studio album Backwoods Barbie, released on February 26, 2008, which reached number two on the country chart. Its debut at number 17 on the all-genre Billboard 200 albums chart was the highest in her career. The album produced four additional singles, including the title track, written as part of her score for 9 to 5: The Musical. After the death of Michael Jackson, whom Parton knew lly, she released a video expressing her feelings about him and his death.
On October 27, 2009, Parton released a four-CD box set, Dolly, featuring 99 songs spanning most of her career. She released her second live DVD and album, Live From London, in October 2009, filmed during her sold-out 2008 concerts at London's The O2 Arena. On August 10, 2010, Parton's longtime friend Billy Ray Cyrus released the album Brother Clyde. Parton was featured on the track "The Right Time", which she co-wrote with Cyrus and Morris Joseph Tancredi. On January 6, 2011, Parton announced her new album Better Day. In February 2011, she announced the Better Day World Tour, beginning July 17, 2011, with shows in northern Europe and the US. The album's lead-off single, "Together You and I", was released on May 23, 2011, and Better Day followed on June 28, 2011.
In 2011, Parton voiced Dolly Gnome in the animated film Gnomeo & Juliet. On February 11, 2012, after the sudden death of Whitney Houston, Parton stated, "Mine is only one of the millions of hearts broken over the death of Whitney Houston. I will always be grateful and in awe of the wonderful performance she did on my song and I can truly say from the bottom of my heart, 'Whitney, I will always love you. You will be missed.'"
In 2013, Parton joined Lulu Roman for a re-recording of "I Will Always Love You" for Roman's album, At Last. In 2013, Parton and Kenny Rogers reunited for the title song of his album You Can't Make Old Friends. For their performance, they were nominated at the 2014 Grammy Awards for Grammy Award for Best Country Duo/Group Performance. In 2014, Parton embarked on the Blue Smoke World Tour in support of her 42nd studio album, Blue Smoke. The album was first released in Australia and New Zealand on January 31 to coincide with tour dates there in February and reached No. 1 on album charts in both countries.
It was released in the United States on May 13 and debuted at number six on the Billboard 200 chart, making it her first top-10 album and her highest-charting solo album ever; it also reached number two on the US country chart. The album was released in Europe on June 9 and reached number two on the UK album chart. On June 29, 2014, Parton performed for the first time at the UK Glastonbury Festival, singing songs such as "Jolene", "9 to 5" and "Coat of Many Colors" to a crowd of more than 180,000. On March 6, 2016, Parton announced that she would be embarking on a tour in support of her new album, Pure & Simple. The tour was one of Parton's biggest tours within the United States in more than 25 years. 64 dates were planned in the United States and Canada, visiting the most requested markets missed on previous tours.
In the fall of 2016, she released "Jolene" as a single with the a cappella group Pentatonix and performed on The Voice with Pentatonix and Miley Cyrus in November 2016. Also in 2016, Parton was one of 30 artists to perform on "Forever Country", a mash-up of the songs, "Take Me Home, Country Roads", "On the Road Again" and her own "I Will Always Love You". The song celebrates fifty years of the CMA Awards. At the ceremony itself, Parton was honored with the Willie Nelson Lifetime Achievement Award, which was presented by Lily Tomlin and preceded by a tribute featuring Jennifer Nettles, Pentatonix, Reba McEntire, Kacey Musgraves, Carrie Underwood and Martina McBride.
In 2017, Parton appeared on Rainbow, the third studio album by Kesha performing a duet of "Old Flames Can't Hold a Candle to You". The track had been co-written by Kesha's mother Pebe Sebert. It was previously a hit for Parton and was included on her 1980 album Dolly, Dolly, Dolly. She also co-wrote and provided featuring vocals on the song "Rainbowland" on Younger Now, the sixth album by her goddaughter Miley Cyrus.
In July 2019, Parton made an unannounced appearance at the Newport Folk Festival in Rhode Island and performed several songs accompanied by the Highwomen and Linda Perry. In 2019, Parton collaborated with Christian alternative rock duet For King and Country and released a version of their hit "God Only Knows". She followed this by recording a duet with Christian music artist Zach Williams in the song "There Was Jesus". In 2020, Parton received worldwide attention after posting four pictures, in which she showed how she would present herself on social media platforms LinkedIn, Facebook, Instagram and Twitter. The original post on Instagram went viral after celebrities posted their own versions of the so-called Dolly Parton challenge on social media.
On April 10, 2020, Parton re-released 93 songs from six of her classic albums: Little Sparrow, Halos & Horns, For God and Country, Better Day, Those Were The Days and Live and Well. On May 27, 2020, Parton released the song "When Life Is Good Again" to lift the spirits of those affected by the COVID-19 pandemic. She also released a music video for the song, which premiered on Time 100 talks on May 28, 2020.
In October 2020, Parton was featured on the single "Pink" alongside Monica, Jordin Sparks, Sara Evans and Rita Wilson. The single was released in aid of Breast Cancer Research. Parton released A Holly Dolly Christmas in October 2020. On December 6, CBS aired a Christmas special, "A Holly Dolly Christmas", where Parton performed songs from her album.