Ophelia was the first single off Swift's 2025 The Life of a Showgirl album. As she accepted the VMA honour, she praised Parton as "the ultimate showgirl".
"I think that we were all very lucky to share this planet with Dolly Parton for a time," Swift said on stage at the Peacock Theater in Los Angeles on Sunday.
Parton, an award-winning country singer, songwriter and businesswoman, died in August at the age of 80.
The pop powerhouse also received the inaugural Artist Director Honors, becoming the most-awarded artist in VMA history.
Previously, she was tied with Beyoncé for the title, with 30 VMAs each. The new award is meant to recognise artists "whose work behind the camera has expanded the possibilities of music video and advanced the art of visual storytelling".
"I got to start making music videos and being a part of music videos 20 years ago," Swift said in her speech, adding that she's been involved in making roughly 60 music videos, 18 of which she wrote and directed.
"You, the fans, make it so much fun," she said.
In other awards, Madonna was named artist of the year and her duet with Sabrina Carpenter, Bring Your Love, was crowned best collaboration.
Madonna said she enjoyed working with Carpenter because their work styles complemented one another.
"When I show up late, she shows up early," Madonna said, adding that both share the old-school habit of writing lyrics on pieces of paper.
"It's been wonderful working with you, and I love this song," she said.
Lisa, a member of the group Blackpink, won the VMA for best pop video for her solo effort Dream.
Sporting a black outfit with large white fringe sleeves, she spoke through tears as she thanked her fans, known as Lillies.
"I wouldn't be here without you guys," she said as she held the VMA Moon Person trophy.
"Thank you so much for your love and support."
Nirvana took home the coveted Video Vanguard Award.
"They were completely original and always fearless at a time when the status quo kind of got to the point of being formulaic," Public Enemy rapper Chuck D said of the grunge greats.
"Today, their influence could be heard in virtually every generation of artists who followed."
The award was presented to surviving members Krist Novoselic, Dave Grohl and Pat Smear. Their frontman Kurt Cobain died in 1994.
"Kurt was one of one," Novoselic said in their acceptance speech, adding that the band never imagined its sound and aesthetic would resonate with so many people.
He said the music continues to endure because people are still hungry for "something real, something uncompromising" and a message that "it's just okay to come as you are'.
with AP
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