Phoenix Park Nursery on Smithurst Road, was rated 'good' for quality of education, behaviour and attitudes, personal development and leadership and management - leading to the upgraded rating to 'good' overall.
New manager Kirsty Daime said: "Everybody worked very hard and we're all very proud, we're a very dedicated team."
The report said: "Children separate easily from their parents as they arrive at nursery.
"Younger children approach familiar adults for cuddles and reassurance if they need it.
"Older children show growing confidence as they talk to visitors about their time at nursery and politely ask their names.
"Staff show genuine pride in children's achievements, such as when children take their first steps.
"This helps to build children's self-esteem as staff tell them how proud they are.
"Leaders have established a clear, well-sequenced curriculum which helps children become ready for school
"Generally, staff demonstrate a secure understanding of the curriculum and know what they want children to learn.
"Older children are particularly well-supported - staff understand what older children need to learn next and plan precise activities to meet their learning goals.
"Children who are disadvantaged, including those with SEND are well supported.
"Staff understand what children need to learn next and provide them with a targeted plan for their development.
"Staff work closely with external agencies and understand how to make referrals for additional support when it is required.
"Staff promote a love of books and reading throughout the nursery.
"Generally, children behave well and staff develop strong partnerships with parents, who are happy with the care provided by the nursery."
On what the nursery can do to improve, the report said is should 'provide further support to less experienced staff to help them understand how to plan and deliver activities to support children's next steps', 'review and improve daily routines and transitions for younger children to minimise waiting times' and 'support staff to provide a more consistent approach to managing children's behaviour and help children understand what is expected of them'.