Ellie Wolstencroft split open her nose when she fell face-first onto a set of boxed-in heating pipes at Holyrood Nursery, in Swinton, Greater Manchester, in March 2006.
She was taken to hospital and needed stitches to a deep cut on the bridge of her nose, which has left her with permanent scarring.
Initially, the nursery's insurers denied liability, but later admitted they were at fault at a hearing at Manchester County Court.
District Judge George Needham said Ellie should be paid £6,000 in damages. He also ordered she receive her defence costs of £5,750.
"Hopefully it (the scar) won't bother her in later life,' he said. 'A sum of £6,000 seems about right to me.'
The judge said the money would be invested by the Public Trust Office and the final sum would be given to Ellie on her 18th birthday.
Ellie's parents, Michael Wolstencroft and Joanne South, from Swinton, Greater Manchester, said they were pleased with the award.
Joanne, 38, said: "It was a huge gaping wound. It went right down to the bone. When I saw it I just thought `Oh my God'.
"The staff at the nursery were fantastic when it happened, but the management didn't seem concerned.
"They just said we should contact the insurers.
"We've seen a specialist and were told that as she gets older the scar will become more prominent. We don't know how she will feel about the scar when she gets older - only time will tell."
Ellie was just18 months old when the accident happened. An ambulance was called and she was taken to Hope Hospital, Salford, where she had three stitches.
Immediately afterwards staff at the nursery removed the wooden casing from the pipes and replaced it with a plastic cover with a rounded edge.
Ellie now goes to school, but still attends the nursery's summer school.
A spokesman for Holyrood Nurseries said: "It was unfortunate a child in our care sustained a minor accident. The correct procedures were followed and we continue to provide care for this child and have maintained a strong relationship with the family."