Vicarage Park School won the schools' summer challenge with its enclosed courtyard and variety of plants, vegetation and herbs.
Judges were particularly impressed by the herbs being used to flavour school pizzas.
Heron Hill's reception class and Brantfield Nursery were joint runners-up, while Castle Park and Stramongate School - which has appointed two pupils as 'head gardeners' - were highly commended.
Best-kept church grounds went to the Unitarian Chapel for its varied garden areas, while best-kept yard/community area went to 3 Sedbergh Drive, where children have transformed a front garden into a lawn with flowers, neat brick edges and a small vegetable garden.
Runner-up prize went to Websters Yard, with Kent Court receiving a high commendation.
Best environmental project went to Wendy and Charles Ely, of Larch Grove, who have created a natural wild woodland garden bordered by trees and hedgerows, with a herb area and water feature.
The Bookthrift store, on Highgate, came second, and also took the prize for best shop front.
Best pub/restaurant/ hotel went to Capper's Restaurant, off Stramongate, which has transformed a small, uninteresting yard into a mass of colour.
The Ring O' Bells came runner-up, with a high commendation to Castle Dairy.
Owner of Capper's, Tim Capper said he was 'ecstatic' about winning.
"I didn't think a newcomer to Kendal Pride would take anything," he said.
"There wasn't anything in the yard when we started and now it looks like a little Garden of Eden.
I'm a chef and know nothing about gardening, but it obviously worked."
Mrs Appleton said entries from pubs were 'disappointingly low', even though there are so many attractive displays around.
"The Castle Inn on Castle Street hasn't entered, but has the most wonderful display which was certainly one the judges noticed as they went round," she said
Best B&B went to Airethwaite House for the third year, while Murley Moss - maintained by Horticare with help from adults at The Whinfell Centre - won best commercial premises.
Mrs Appleton said Talbot Insurance also deserved a mention, as staff had transformed overgrown gardens at the company's new second offices in Kendal into an attractive haven.
"It is definitely one to watch for the future," she said.
Scores of contenders vied for the best hanging basket prize, which went to last year's winner Mr Fox, of Haygarth Court for his blooming mass of colour, with Mr Gower, of Websters Yard, coming second.
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