The nursery, which is situated in the grounds of St Richard's Hospital, was visited by inspector Julie Bruce earlier this month.
In her report, Ms Bruce described staff as "exceptional role models" for the children, while the youngsters themselves were seen to make excellent progress at the nursery. Their maths skills were recognised as being "extremely strong".
Praising senior nursery manager Sharon Bowell and her team, Ms Bruce said: "The manager carefully monitors the progress every child is making to ensure outcomes for all children are excellent. Children who speak English as an additional language and those for whom the provider receives additional funding, make excellent progress. They thrive and catch up with their friends."
The report praised the Ms Bowell's "high aspirations for excellence" and the efforts she made to seek the views of every parent, child and staff member to continually develop the nursery.
Ms Bruce added: "Children's behaviour is excellent. Staff offer children constructive support to resolve any friendship issues. Children work very well together."
She was given a demonstration of how well the youngsters worked together when they had fun discussing the ingredients they needed to pretend to make dinosaur soup!
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