The town council has retained its status following a tough examination process.
It was one of the first councils in Gloucestershire to be given the Quality Town Council status in 2008.
Of 8,500 councils in the country only 688 of them have quality status. The status is reviewed every three years.
Stroud town mayor Amanda Moriarty said: “This is an independent assessment of our work, illustrating that we are representative, competent and well managed.
“We accept we don’t get everything right all the time but this shows that we get most of it right, most of the time.”
The Quality Parish and Town Council Scheme, which was launched in 2003, aims to provide a benchmark minimum standard for parish and town councils across the country.
Councils must undergo ten tests to be awarded the status. They include: promoting local democracy and citizenship, communication and community engagement, accountability and training.
A spokesman for the Gloucestershire Association of Parish and Town Councils said: “It is a real achievement for a council to retain its Quality status, but by doing so it demonstrates that it is still in touch with its community and is well managed.
“Councillors and staff are to be congratulated for their dedication and hard work in maintaining the high standards Quality status recognises.”
Details of the scheme can be found at www.nalc.gov.uk.