Parents of pupils at Greasley Beauvale primary school, in Newthorpe, Notts, are marked from A to D based on their involvement with their children's education.
The system is intended to improve the children's performance at school by encouraging their mothers and fathers to attend events, such as parents' evenings and plays, and help with learning at home.
It has been in place since 2011 and has become public knowledge thanks to an Ofsted report earlier this month which commended the school for its "startling" results.
"For many children at this school, it is making a huge difference," wrote Sir Michael Wilshaw, head of Ofsted, assessing Nottinghamshire schools in his final annual report.
He said that children of parents in groups A and B make significantly better progress than those whose parents are in groups C and D, but that the system ensures less-engaged parents are productively supported by the school.
"Telling a parent what the impact their lack of engagement is having on the life chances of their child is not easy," wrote Sir Michael. "But for many children at this school, it is making a huge difference."
Not all parents are enamoured of being graded. "They'll have us all wearing dunce's hats next," said a mother-of-one, who did not wish to be named. "It's absolutely ludicrous."
She said that "it's one thing when your child gets a bad grade, but now they openly embarrass their parents too."
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