The school's 155 pupils were presented with the EnviroSchools award for their efforts in sustainable practices.
Musselburgh School principal Debbie Smith said the school had made significant gains through initiatives including collecting rain water, saving energy, reducing paper waste, composting food scraps and developing a community garden.
"We are very proud of what we have achieved," she said.
The school became involved in the programme in 2006.
Mrs Smith said it had been viewed as a perfect opportunity for children to become aware of the environment, to get some hands-on learning and have some fun.
Musselburgh School is one of 33 in the Dunedin City area involved in the EnviroSchools programme.
EnviroSchools regional co-ordinator Jennie Upton said Musselburgh's silver award, presented at a school assembly yesterday, was part of a programme brought in last year for schools to empower pupils and encourage both learning for sustainability and respect for the diversity of people and cultures.
Ms Upton said EnviroSchools was impressed with Musselburgh School's creating of a hub.
The hub encouraged the community to come in and be involved in sustainable practices.
"We are really excited that Musselburgh School is leading the way this year," she said.
The school would now take on the challenge of earning the green gold award, Mrs Smith said.
The school was already encouraging pupils to "be responsible and make a difference" by turning off lights, picking up rubbish, bringing school lunches in recyclable containers and walking or cycling to school.