Scallywags Pre-School, based at Turton Edgworth CE School in Bolton Road, Turton, was graded good by Ofsted, a drop from its previous score of outstanding.
It was told strategies to ensure children are engaged in their learning and staff professional development needs to be improved to get back to its top rating.
In the report, Ofsted inspectors said: “Children separate happily from parents and carers with ease and initiate their own play outside, demonstrating they feel safe, secure and emotionally settled.
“They confidently explore the outdoor learning environment, demonstrating their growing independence.
“Staff warmly welcome excited children into the pre-school, and support children in developing fundamental skills of balance, coordination and agility, as well as supporting their developing listening and attention skills.”
It praised positive relationships between staff and children and their families, said staff are good role models and their support builds children’s confidence, resilience, respect and good manners.
The report added: “Leaders develop a curriculum with a central focus on preparing children for their next stage, and children are well prepared for the future.
“Staff provide opportunities for children to develop their independence through daily routines, such as snack time, and children are developing confidence in their abilities. Staff promote healthy lifestyles.
“Parents speak highly of staff and are extremely appreciative of the care and support their children receive.
“Leaders ensure that staff feel valued and supported. They ensure well-being for staff is a priority. Staff feel they have a manageable workload and report being very happy within their role.”
To improve, Ofsted said Scallywags should “plan more effectively to enable all children to benefit from the intended language and communication curriculum, and target staff training needs more precisely as part of a well-structured development plan, to raise the quality of education further”.