Kye Greenhill is among only a handful of year 1 pupils to receive a 2014 Gili Award for academic excellence.
The Widemere Public School pupil was awarded $250 under the scholarship program, which recognises the success of Aboriginal and Torres Straight Islander students in NSW schools.
Teacher Renee Sajnovic, who taught Kye in kindergarten, said he was a deserving recipient.
Miss Sajnovic said Kye's work was above the level expected for his age and he had worked diligently to improve his writing, using text features such as headings and paragraphs to organise information.
"I nominated Kye for the award because he combines natural ability with an eagerness to learn," she said.
"I though he was the perfect candidate for [his] not just academic, but social success.
"He was quite withdrawn when he started kindy and since then he has really developed social confidence."
Miss Sajnovic said the scholarship money could be spent on any aspect of Kye's education, including resources, textbooks and excursions.
Kye's mum Diana said she and her husband Jason were proud of their son's achievement.
"We're rapt, but I don't think shocked," she said.
"He's one of those kids that has a real love for learning.
"A lot of parents complain that their kids won't do their homework, whereas Kye will come home and get his books out and go for it and never complain."