The inspection team's report, which has now been published, highlights key strengths at the Little Explorers Nursery which was the county's first Forest School when it opened in 2011 with much of the activities based outdoors in the grounds of Broomfield Hall.
Strengths include inspirational and visionary leadership and a vibrant learning environment both indoors and outdoors with utmost priority given to the children's safety.
Inspectors praised the exemplary behaviour amongst the children who settle well, have excellent communication and language skills and are extremely well prepared for the next stage of their learning and school.
The report is particularly complimentary about the quality of teaching, learning and assessment – especially in maths - through 'stimulating activities'.
The Ofsted report follows Derby College's overall Ofsted inspection earlier this year which rated the academic and vocational provision as 'Good' with its work with employers and for students with higher needs as 'Outstanding'.
Derby College Chief Executive Mandie Stravino said: "We are obviously delighted with the findings of the Ofsted inspection and I congratulate all the staff involved with Little Explorers on this justified praise.
"Little Explorers reflects the ethos of the whole College – providing a high quality education and environment which prepares the children here and the students elsewhere in the College for the next stage in their lives."
Little Explorers Manager Kate Cox, who was singled out for praise in the report, said: "Having gained a 'Good' grading three years ago, we are thrilled to have gained top grades across the board for this inspection.
"It shows the high standards that we set ourselves in motivating the children's curiosity and interest in their surroundings so that they are not only happy and healthy but are well prepared for starting school."
The Nursery employs 14 members of staff, including those who have trained and qualified through Derby College and has 108 children enrolled ranging from young babies to older children who attend before and after the school day and for holiday clubs.
For more information, please visit the Little Explorers website.