And the 67-year-old Southern superstar isn't bothered by her 20-year-old goddaughter's twerking, nakedness and sexed-up image. In fact, Dolly thinks the Bangerz beauty knows exactly what she's doing.
"I know that she has thought this all through," the living legend said in an interview with London's Standard published Friday, Nov. 1. "We'll let her go and do her own thing."
"If she needs my opinion on something I will surely give it, and there have been times we've talked," she says. "But I would never dream of calling her and saying, 'Well why are you doing this?' or, 'You shouldn't do this or that.'"
"It's not easy being young," Dolly empathizes. "It's hard to know what to do. You've almost got to sacrifice your damn soul just to get anything done."
This loving godmama also knows a thing or two about people trying to undermine someone's talent based on their looks (see her "Backwoods Barbie" music video above). She's clearly disproven her detractors throughout her lustrious career, though, and knows Miley will do the same.
"I don't think people really realize yet what a great singer and writer she really is," Dolly gushes. "I've loved her through the years and watched her grow up, and I've seen how smart she is and how talented she is…She's just trying to find her own place and wings and learn to fly."
In fact, Dolly "would love for [Miley] to sing my songs," saying, "I would love to do some duets with her. I would love to sing with her and write with her because I think she is so gifted."
Aww. Miley's one lucky lady to have such a sweet soul always on her side.