Prejean, the former Miss California USA, was fuming as she spoke to Fox News' Sean Hannity Tuesday night.
“I basically wouldn't give them a story and so they came out with their own version of it,” she said. “They took something out of my book and totally twisted it and made it something negative.”
Saturday’s Times article portrays Trump as making "unwelcome romantic advances" and engaging in "crude" behavior in the past.
It quotes from Prejean's 2009 book, Still Standing: The Untold Story of My Fight Against Gossip, Hate, and Political Attacks, when she described how Trump inspected the contestants at the 2009 Miss USA Pageant "closer than any general ever inspected a platoon... Many of the girls found the exercise humiliating."
On Tuesday night, she let it all out, telling Hannity: “Let's put it in context here, Sean. This was a beauty pageant. They're making a big deal that he walked across the stage and was looking at us? Are you kidding me? That's ridiculous!”
Prejean came under fire after the 2009 Miss USA pageant when she was asked a question about same-sex unions, and declared it was her belief that marriage should be between a man and a woman.
While Trump initially defended her over the remarks and a subsequent racy photo scandal, he ultimately fired her.
Prejean’s criticism comes after Trump's former girlfriend Rowanne Brewer Lane also accused The Times of distorting her comments.
Trump's daughter, Ivanka, also weighed in on The Times controversy on CBS This Morning Wednesday, saying: “This is an article that is widely being discredited.”
She added: “The lead person who was interviewed — for the story and that the story opens up with — was all over the news yesterday, saying that they manipulated what she was saying. So you know, I don't find it that meaningful to comment on this particular story because I think the facts are starting to speak for themselves."
Trump's wife, Melania, is also making headlines.
In an interview with Du Jour magazine, she was asked what gift Bill and Hillary Clinton gave when they attended her wedding.
"I don't think they sent a gift," she said. "Some people didn't send gifts."
Melania was also asked about MSNBC's Chris Matthews caught ogling her on a hot mic during a Trump victory speech two weeks ago.
"Unbelievable," Melania said. "I’m not only a beauty, I’m smart. I have brains. I'm intelligent. I would just say, men will be men."