Treetops Children's Nursery, in Carlin Gate, North Shore, has been ranked by Ofsted after a routine inspection.
It was judged to be 'good', after being handed the best possible score of 'outstanding' following its last visit.
The education watchdog said in a report: "Babies settle in well and seek cuddles and reassurances from the warm and nurturing staff when they are tired.
"Children talk with enthusiasm about their 'newsbooks', showing their friends the photographs of what they have been doing at home.
"They are eager to join in activities and understand routines and expectations of behaviour. For example, children know to wait until the end of morning group time, before choosing what to play with next."
It added: "The dedicated managers and staff work well together as a team and share their high expectations. They provide an inclusive, stimulating learning environment and plan effectively for children with special educational needs and/or disabilities."
To improve to outstanding again, the nursery should "focus supervision and monitoring more sharply on promptly identifying weaknesses in practice, and raise the quality of teaching and learning so it is consistently at the highest level", Ofsted added.
It should also "enhance the opportunities provided to children to help them to learn how to make healthy choices".
The nursery has 101 children on roll, aged up to four.