The team at Busy Bodies Childcare centre at Lower Galdeford, Ludlow, received the top grade from Ofsted after last month's inspection.
The centre was labelled outstanding in all areas: the quality of education; behaviour and attitudes; personal development and leadership and management.
James Boddey, director of Busy Bodies said: "The team and I are really proud of the outcome of this inspection.
"The team work so hard every day to make Busy Bodies the best setting that it can be.
"It has been a hard few years with Covid, but with the awesome team that we have and the support of the parents and carers we have been able to achieve so much."
Commenting on what it is like to attend the nursery, the inspector's report said: "Children excitedly enter the welcoming nursery environment.
"They build exceptionally strong bonds with staff and demonstrate that they feel safe and secure with them.
"Staff nurture the individual personalities of babies and support their sense of security superbly.
"The excellent progress that children make stems from the secure attachments that they have with staff.
"There is a wonderful ambience of positivity throughout this nursery. Children are at the very heart of this setting, in every aspect of their wellbeing."
The inspector praised the nursery's curriculum of learning, which is 'extremely clear' and 'well-sequenced' and staff know their children exceptionally well.
They also praised the inspirational environment, where children engage in arts, music festivals and working with their local community.
For further improvement, the inspector advised the nursery to continue monitoring its practices to sustain its already outstanding teaching.
Meanwhile the nursery has been nominated in the top eight 'Individual Nurseries' in the country, at the Nursery Management Today Awards.
They have also been shortlisted – in the top four – of the Enabling Environment category at the Nursery World Awards.
"The Nursery Awards is an extra bonus and great to be recognised at these awards for the brilliant place that Busy Bodies is," James added.
"We now look to continue to build on this success as we believe we can always continue to develop and improve".