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Posey made her stage debut in 2001, and has worked regularly on the stage since. Posey also dabbles in music; she can play the mandolin. She learned to play as preparation for her role in A Mighty Wind (2003), a film in which she also sang. She used her vocal talents on several records of her ex-boyfriend, Ryan Adams, whom she dated until early 2005. She also played the mandolin on The Dandy Warhols track "I Am Sound" from their Welcome to the Monkey House LP.

She is also the subject of several songs:

She is the subject of a tribute song by Stuart Davis on his 2006 album ¿What.

L.A. based rappers Trilambs also recorded a song titled Parker Posey in 2001.

Musical project Forms of Things Unknown recorded an experimental music instrumental called From Here to Parker Posey.

Beginning in February 2006, Posey appeared in a commercial for Pepsi Cola opposite Jimmy Fallon, dancing to the song "Newton - Streamline".  It was prominently aired during the FOX broadcasts of the 2006 World Series in October, and a longer version has also aired in movie theaters. She is a contributing editor to Open City, a literary magazine whose editor, Thomas Beller, she once dated.

Posey has appeared on the cover of Lucky magazine, an online shopping site.