Parton was named on the Rock Hall shortlist last month, alongside fellow first-time nominees Eminem, Lionel Richie, Duran Duran, and A Tribe Called Quest.
Other artists and groups being considered for induction are Rage Against the Machine, Pat Benatar, Dionne Warwick, Carly Simon, Judas Priest, Beck, Kate Bush, DEVO, Eurythmics, Fela Kuti, MC5 and the New York Dolls.
Parton is most associated with country music and is in the Country Hall of Fame, but she has performed songs with a rock feel. Artists who have made both the Rock Hall and Country Hall of Fame include Brenda Lee, Johnny Cash, Elvis Presley, Chet Atkins, Hank Williams, and the Everly Brothers.
The Foundation on Thursday said there was plenty of room in the Hall for artists who aren't pure rockers.
"From its inception, rock 'n' roll has had deep roots in rhythm & blues and country music. It is not defined by any one genre, rather a sound that moves youth culture," the statement reads.
"We are in awe of Dolly's brilliant talent and pioneering spirit and are proud to have nominated her for induction into the Rock & Roll Hall of Fame." - AP