Loxley Nursery, on Rodney Hill, Loxely, has been rated as outstanding in all areas by Ofsted.
Inspector Lianne McElvaney, who visited the nursery last month, praised the 'exceptional' leadership and management, the 'excellent' relationships between children, parents and staff and the high standards of provision.
"I’m so proud of the children, families and the staff team, together we make it a very special place where the children are given the best opportunities to feel belonging, and fulfil their potential."
She took over the nursery in 2014 when it was rated as inadequate and rapidly worked to achieve a good standard.
The inspector said children benefit from a rich, well-planned learning environment, experienced staff are sensitive and caring and ensure that children's physical and emotional needs are consistently met and the manager has a 'strong vision, determination and passion to deliver the highest-quality outcomes'.
She found that parents are valued, are constantly involved in their child's learning and are well informed about progress and achievements.
Ms Davidson added: "We are obviously proud of this tremendous accolade but we will continue to work hard to retain our outstanding grade."