The two-year-old fell from the window at Munchkins Nursery in Shard End, Birmingham, in September 2013. A council spokesman said he was lucky not to have been seriously hurt.
The nursery, which has since closed, was charged with health and safety offences by the city council.
Owner Suzanne Holmes was fined £2,500 and ordered to pay costs of £14,500.
Munchkins had been registered with Ofsted but its licence was suspended shortly after the fall.
Councillor Barbara Dring, chair of the licensing and public protection committee, said: "This little boy is incredibly lucky not to have suffered more serious injuries after falling from a first floor window.
"This awful accident could have been prevented had some inexpensive window restrictors been fitted, or the windows closed in the room."
Ms Holmes, 62, of Solihull, admitted a charge of failing to discharge her duties under the Health and Safety at Work Act 1974.
A nursery owner has been ordered to pay £16,500 after a toddler fell from a first-floor window,