When my girls graduated from Kindergarten they got little diplomas and I bought them a special item that had the yr they graduated from Kindergarten that was actually for a high school graduation. This made the transition a bit easier. The preschool did not do anything for them but I always make sure they are supported through out their years in school. I have one that graduated High School last year and one who is a senior this year. I am one proud mom and love celebrating their success in life to help them become Positive, Well Rounded, Indpendant and Proud Young Ladies who will be successful in life.
My daughter graduated preschool this year and they did a fun, laidback, small ceremony. The teacher decided against caps and gowns and said it actually stresses them out more when it so formal. She just finished her doctorate in teaching. A mom had already purchased a cap/gown so it was available for the kids to wear for pictures. I think the kids would've had fun either way.