Pupils donned hard hats to see how their new nursery building is starting to take shape.
Work on the site at Cleadon Church of England Academy is now underway and expected to be completed before the start of the 2017/18 school term.
The academy successfully applied for funding to help with the development, which will provide almost 80 places.
Academy principal Jayn Gray said: “As part of the academy’s strategic planning, we have consulted with staff, parents and local residents to see how the academy could improve the services we offer to our local community.
“One recurring theme has been the demand for high quality nursery provision.
“Consultation with South Tyneside Council and the Diocese confirmed that additional government funding for nursery provision for working parents has increased pressure on nursery provision in the borough and there is a shortage of places.
“During the Autumn term last year plans were prepared and an application made to the EFSA - the Education and Skills Funding Agency, which replaced the Education Funding Agency in April this year - for grant funding to support the development and building of a new 78-place nursery.
“At the beginning of April, we were delighted to hear that our bid for funding had been successful.
“From nearly 4,000 schools across the country that applied for the grant, Cleadon Church of England Academy was one of only 286 schools awarded a grant for new building work.”
Ms Gray added: “The contract to build the school has been awarded to Northern Bear, a North East-based company.
“Work began at the beginning of May and we are on track to complete the nursery in August ready for the start of the new school year in September.
“The nursery will offer high quality, school led provision to ensure children are ready for school when they enter the Reception year.
“Fifteen and 30-hour places will be available for three to four-year-olds.”
Cleadon Church of England Academy is now taking applications for places at the nursery and forms can be obtained from the school office in person or by emailing firstname.lastname@example.org.