Inspectors visited Nishkam Primary School last month and found leaders to have "high expectations of the pupils' behaviour and learning".
The school has "improved a great deal" since its last inspection in 2017 when it was deemed 'Requires Improvement', with leaders and governors having "relentlessly focused their attention on the quality of education provided by the school".
Headteacher Harmander Singh Dhanjal said: "I am incredibly proud of each and every member of our Nishkam team.
"We have worked relentlessly to continue our journey to excellence within our inclusive, virtues-led school."
Leaders at every level think very carefully about every aspect of the Great Brickkiln Street school’s curriculum to make sure pupils "build on their learning from one year to the next", with the teaching of early reading, as well as English and mathematics being particular strengths, says the inspection body.
Ofsted said leaders and staff "want all pupils to achieve their best in all subjects", and teachers are "passionate about what they teach and inspire pupils to learn".
Staff have good subject knowledge and enthusiasm for the subjects they lead, added the report, while the school provides a wide range of opportunities for pupils' positive personal development - including a '100 things to do before you leave Nishkam' programme - with high uptake of clubs among children.
The pupils themselves "behave very well and have positive attitudes", said inspectors,
They are "polite, respectful and caring of everyone", which makes the school "an extremely positive and inclusive place to learn", they said.
Leadership and management of the school, which is part of the Nishkam School Trust, was judged to be outstanding, with the quality of education, behaviour and attitudes, personal development and early years provision all rated good.
Councillor Dr Michael Hardacre, Wolverhampton Council's cabinet member for education and skills, said: "This is an excellent report which demonstrates sustained improvement at Nishkam Primary School over recent times.
"I would like to congratulate Harmander Singh Dhanjal and his team on their hard work which has enabled Nishkam to become a Good-rated school with outstanding elements."