A new Ofsted report has highlighted Kintore Way Nursery School's "exciting" curriculum, its "culture of trust and mutual respect" and the "motivated and committed staff".
In 2013 the school received an 'outstanding' rating and it has retained that accolade after the latest inspection.
"We are absolutely delighted," said headteacher Rebecca Sherwood.
"The report really reflects the passion staff here have for providing the best education for our children.
"It is particularly rewarding to see our work with children with special educational needs being recognised."
Cllr Victoria Mills, Southwark's cabinet member for children and schools, said: "This is wonderful news and well deserved for an exceptional headteacher and her team of dedicated staff.
"Well done to all at Kintore Way who are showing what the very best nursery schools should be doing.'
Kintore Way currently has places for its September intake, with up to 30 hours free education and child care available.