The 74-year-old icon was especially eager to have her goddaughter feature on the record because she knows she's unlikely to ever make another festive-themed album.
Dolly - whose record is called 'A Holly Dolly Christmas' - said: "She had to sing on this Christmas album.
"She was working on her own project and I said, ‘I’m not going to ask you to put it out as a single, I know you got your own thing, but you have to sing on this album with me - you and Billy Ray, because you’re like family, and I’m probably never going to do another Christmas album.'"
Dolly has also recorded a track with Michael Buble and although she wasn't able to spend time in the studio with the chart-topping star, she's looking forward to catching up with him once the coronavirus crisis eases.
Dolly told 'ET Canada': "We did talk a lot you know on the phone and all the zoom stuff that you do. When life is good again, I’m going to get with all these people."
And although Dolly hasn't been able to release a Christmas special this year, she's hopeful it might happen in 2021.
She shared: "I said maybe next year, I can get with all these artists and we can revive the album for Christmas next year and add some new and additional things and make a special.
"I believe in rolling as you go, you can’t give up, you just fit yourself into anything that’s happening. Be as productive as you can be."
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