This Action Research (AR) project aims to answer the question “How can I improve the environment to support the emergent curriculum within the toddler room?” It utilises Kemmis and MacTaggart’s Action Research Spiral. The researcher, two team members and 24 children aged 18–30 months participated. The research took place in the researcher’s place of work: a non-profit community childcare setting. Data was gathered over two cycles of Action Research through observations of the children within the setting, field notes and focus group meetings throughout the project over a six-month period. The project demonstrated the power of the environment to support children’s learning and development and to enable them to be the instigators of their own learning. It highlighted the key role of the educator in providing this environment, ensuring it is inclusive and accessible to all children and in engaging in continuous reflective practice as a team with the aim to improve and make meaningful changes. Partnership with parents in creating an environment that supports the diversity of our classrooms also arose as an important finding.