The glowing report, carried out after an inspection in September says Little Leintwardine Nursery is a "highly engaging and nurturing setting", with exceptionally well behaved children who are given "incredible play opportunities".
Hannah Morgan, who manages the nursery at Watling Street, Leintwardine, said: "We pride ourselves in providing an excellent level of care for our children, getting to know the parents and the families helping the children grow in a safe nurturing environment."
The nursery, based at Leintwardine Primary School, caters for two to four-year olds and had 19 children on the roll at the time of the inspection.
Hannah added: "May we take this opportunity to thank everyone for their continued support of our outstanding nursery."
The report authors said: "Children are excited to attend this highly engaging and nurturing setting.
"They are warmly greeted by caring and attentive staff who know them and their families well.
"Children know the routines of the setting and independently go to hang up their bags and coats and wash their hands as they enter the nursery."
The report added that the children behave exceptionally well, sharing resources and inviting others to their play.