Rhydypennau Community School in Bow Street, near Aberystwyth, had been on two separate sites since 1973, but the work has united it in one building.
The scheme includes a new classroom for nursery children aged between three and five, a new school entrance, a medical room and facilities for staff.
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Ceredigion council said the extension marked a "new era for this school".
Ivor Williams, Chairman of Ceredigion council, said: "This has been an exciting project for the people of this community because it has brought the children together on one site.
"For many years, Ysgol Gymunedol Rhydypennau operated on two sites with the youngest children educated in the old school on top of the hill, whilst the older children have been on this site since 1973," he told the BBC.
"The new extension marks the dawning of a new era for this school."
(BMcC/KMcA)
