Lime Tree Nursery, based on Laithes Lane in Athersley, were inspected by Ofsted on July 27.
All four effectiveness ratings - the quality of education, behaviour, personal development and leadership - were marked good during the inspection.
The nursery, which has space for 90 children up to four, is a full-day care site.
During the inspection, staff were spoken to in a bid to take in their views, whilst the inspector also spoke to parents.
The report ssaid: “The setting is warm and inviting.
“Children begin their day welcoming one another as they sit down and enjoy their favourite songs.
“This helps to develops their vocabulary.
“Leaders have a good understanding of what the setting does well and what it needs to do to improve.
“Managers observe and evaluate staff practice.
“This improves the quality of teaching.
“Children who receive additional funding are supported well.
“The setting works together with a range of professionals to ensure that all children make progress.”