The 68-year-old country singer is the godmother of Cyrus and previously appeared as a guest star in TV series 'Hannah Montana', reported BBC online.
"She's a great talent, Miley, who I've known ever since she was a tiny little baby. She's always been smart and quick and she is so gifted and I really, really hope she does great in this world of show business, and I believe she will," Parton said.
The '9 to 5' singer added, "I believe she's gonna make the right choices, she's had to go a little drastic now and then just to prove her point, but I've got a lot of faith in her and I'm hoping she does great 'cos she is gifted and special.