All Stars Nursery in Aberdeen was ordered to close in 2008 amid concerns about its operation, including claims staff were being employed without disclosure checks and children not being fed properly if they did not eat lunch.
However, following a lengthy appeal process, which went all the way to the UK Supreme Court, the nursery has succeeded in overturning the order.
Nursery owner Sheila Davies said: "I'm absolutely delighted that the case has been found in our favour.
"It has taken almost five years to reach this point and I'm relieved that it has finally been resolved."
The nursery is now contesting a further closure order made last December.