Holy Trinity Playgroup in Belle Vue Road, Shrewsbury, has been hailed by inspectors who say staff and pupils work well together.
The playgroup has 30 children aged two to four and has been rated as ‘outstanding’ by inspectors.
Linda Yates, Ofsted inspector, praised the staff and children.
She said: “Children demonstrate extremely positive attitudes to learning through consistently high levels of concentration and enjoyment.
“They begin to experiment with tools and resources that capture their natural curiosity, such as tape measures, rulers and timers, during their play.
“Children listen intently to their favourite story and use the soft toys and other props to bring the story to life.
“During such activities, children are extremely confident at recognising the initial sounds in words. Children show very high levels of confidence in their play.
“For example, they stand on the outdoor stage and sing songs on their own using the microphone and stand.
“Children keenly investigate as they mix the mud, water and seeds with a stick.
“They carefully pour the mixture into cake tins. During such activities, children talk to each other with increasing confidence about what they are doing and about the imaginary roles they are playing. “
She added: “Children’s behaviour is excellent and they show empathy and a high regard for their friends.
“They are exceptionally well prepared for the next stage in their learning, such as school.
“All staff have an exceptionally good knowledge of the signs that may indicate that a child is at risk of abuse or neglect.
“They are acutely aware of the correct procedures to follow if they have any concerns about a child’s welfare.
“Staff have extensive knowledge of the importance of supporting children’s emotional security and they do this exceedingly well.
“Children form secure emotional attachments with staff through a highly effective key-person system and settling-in procedure. Staff use extremely successful strategies, including high-quality positive role modelling, to promote children’s good behaviour.”