The 67-year-old was a passenger in the 'fender bender' and is reported to have been rushed to a local medical centre following the collision.
The country star tweeted an update to her fans later that same day to notify them that she had been released from the hospital and was recovering at home.
Recovering: Dolly Parton was hospitalised in
Nashville, Tennessee, following a car accident on Monday, pictured in
New York in November last year
TMZ reported that the From Here To The Moon singer was riding in the passenger seat as her long-time friend Judy Ogle was driving.
Ogle is said to not have been at fault as her vehicle was hit by another car.
According to the gossip website, local police officially cleared Dolly's friend of responsibility in the accident.
Resting at home: The 67-year-old notified her
fans on Twitter that she was released from the hospital that same day,
pictured performing in London in September 2011
Parton was then taken to a local hospital where she was treated for 'minor injuries'.
Informing her fans of the incident Dolly took to Twitter soon after the crash.
The Coat Of Many Colours singer wrote: 'I was in a fender bender this morning here in Nashville, but I am all good.'
Adding: 'Just a little tired and sore. Resting at home now!'
Childhood best friend: Dolly's school chum Judy Ogle was driving during the collision, pictured in New York in April 2004
Meanwhile, Dolly and Ogle have been the subject of rumours that the two childhood friends are actually secret lovers for many years now, much to the amusement of the famously blonde bombshell.
In an interview on Nightline last year Dolly, who has been married for 47 years to Carl Thomas Dean, laughed off the idea that she is having a top secret liaison with her best friend Judy.
'Judy and I have been best friends since we were like in the third and fourth grade,' she said in the interview.
'We still just have a great friendship and relationship and I love her as much as I love anybody in the whole world, but we're not romantically involved.'
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