Elon Musk confirmed the news in a Tweet on Friday (January 14), after floating the idea last month.
Dogecoin surged in value by around 14% following the news.
Anyone with enough of the meme-inspired coin can now choose from Tesla merch.
That includes apparel, belt buckles, a quad bike for kids, and a "Cyberwhistle" modeled after its long-awaited Cybertruck.
The Tesla boss owns some of the currency, which has often been roiled by his Tweets.
Dogecoin enjoyed 4,000% gains in 2021, partly thanks to endorsements by Musk.
But he called it a "hustle" during an appearance on Saturday Night Live back in May, causing its price to tumble.
Right now though, Musk seems to back with the dogecoin bulls.