The Grass Is Blue

Decca closed its Nashville office in early 1999, leaving Parton without a label. At a dinner that July, Steve Buckingham told her that bluegrass fans, asked which artist they most wanted to hear make a bluegrass album, overwhelmingly named her. She told Billboard that since she managed herself and had her own label, she asked why not. By the end of August she had recorded the album in Nashville with Buckingham producing and Jerry Douglas, Sam Bush, Stuart Duncan, Alison Krauss and Rhonda Vincent playing and singing.

It mixes her own songs with standards and a Billy Joel cover. Silver Dagger had been popularized by Joan Baez, Steady as the Rain was written for her sister Stella, and Will He Be Waiting for Me updates a song from her 1972 album Touch Your Woman. The album won the Grammy for Best Bluegrass Album and Album of the Year at the 2000 International Bluegrass Music Awards. It reached number 24 on Billboard's country albums chart and number eight on the UK country albums chart. James Hunter of Rolling Stone wrote that she "re-tackles bluegrass, country and traditional songs with brio."