Parton was honored as the MusiCares Person of the Year in a special ceremony held earlier this week, where numerous musicians who appeared in Sunday's performance also paid tribute to the country queen.
Parton received the MusiCares Person of the Year award earlier this week.
The country singer added that Parton is "a total pro", playfully noting: "She and I are the same height!"
They then pretty much confirmed they were working on a Dolly tribute when they uploaded a picture together wearing matching Dolly Parton leather jackets.
This was Dolly's first time on the GRAMMYs stage since 2001, and she opened up to ET before the show about being ready to slay!
Parton stunned with some excellent vocals, kicking things off with Kacey Musgraves and Katy Perry on "Here You Come Again" before duetting with her goddaughter Cyrus on "Jolene". Most known for "Jolene", "Coat of Many Colors", and "9 to 5", she has won nine Grammys, three American Music Awards, 10 Country Music Association Awards, and seven Academy of Country Music Awards.
Parton, 73, also appeared to touch on some of the concerns of the #MeToo movement and sexual misconduct in entertainment and other industries, when she described entering the music business when it was a "man's world". Parton asked to transition into her 1980 single "9 to 5", written for the comedy film of the same name starring Parton, Jane Fonda, Lily Tomlin and Dabney Coleman.
Little Big Town arrived last, with the quartet joining Parton to perform the song "Red Shoes" from the Dumplin' Original Motion Picture Soundtrack, which Parton curated.