Crown Daisy Nursery in Farnborough Road, which opened in 2015, was visited by inspectors for the first time on Friday June 2.
Staff were praised for providing a "highly stimulating environment with excellent activities to inspire and motivate children in their learning".
In their report, the inspectors reported: “Children are incredibly enthusiastic to join in. They very effectively lead their play and develop their own ideas.”
Inspectors found that the management team had "highly effective" systems in place for monitoring children’s learning and development.
This helped staff to implement "very effective" programmes of support, which meant that "all children make excellent progress from their starting points".
The inspectors found that staff had "incredibly successful" strategies for teaching and engaging parents effectively in their children’s learning at home.
“Staff regularly enhance the outstanding child-friendly atmosphere,” the report states. “They display children’s artwork creatively, adding photographs of them as they play.
““Children establish extremely strong attachments with the staff, who are warmly attentive and quickly respond to children’s needs.
“The exceptionally strong and secure key-person system ensures that all children are emotionally well-prepared to learn.”
Victoria Peterkin, founder and managing director of the nursery, said: “I am so proud of the team at Crown Daisy.
“They knew the other nurseries in our group were rated by Ofsted as ‘outstanding’ as we pride ourselves on operating to such high standards but they rose to the challenge.
“Being outstanding isn’t something you can just pull out on the day.
“You have to be hardworking, extremely passionate and knowledgeable, and you have to love what you do.
“Our team, from apprentices to early years teachers, all have that same drive and core values.
“This accolade is a huge achievement, but our work doesn’t stop here.
“We will ensure our standards remain high and the children who come to us keep getting the best experiences and opportunities."