Background Homeless female exoffenders (homeless female offenders) exiting jail and prison are at a critical juncture during re-entry and transitioning into the community setting. Objective The purpose of the study was to compare the effect of a dialectical behavioral therapy-corrections modified (DBT-CM) program with a health promotion (HP) program on achieving drug and alcohol abstinence among female parolees/probationers residing in the community. Methods We conducted a multicenter parallel randomized controlled trial with 130 female parolees/probationers (aged 19–64) residing in the community randomly assigned to either DBT-CM (n = 65) or HP (n = 65). The trial was conducted in four community-based partner sites in Los Angeles (LA) and Pomona, California from February, 2015 to November, 2016. Treatment assignment was carried out using a computer-based URN randomization program. The primary outcome was drug and alcohol use abstinence at six-month follow up. Results Analysis was based on data from 116 participants with complete outcome data. Multivariable logistic regression revealed that the DBT-CM program remained an independent positive predictor of decrease in drug use among the DBT-CM participants at six months (p = .01) as compared with the HP program participants. Being non-White (p < .05) and having higher depressive symptom scores (p < .05) were associated with lower odds of drug use abstinence (i.e., increased the odds of drug use) at six months. Discussion DBT-CM increased drug and alcohol abstinence at six month follow-up, compared to a health promotion program.