Michael Douglas is an Academy Award-winning actor who has earned tons of accolades for his work in movies like Wall Street and Basic Instinct. The highlight of his life, however, has been his role as a “one of a kind” grandfather to his two grandkids.

“Becoming a grandfather has made Michael a ‘warmer’ man,” a source told Closer Weekly, adding that the star’s 3-year-old granddaughter, Lua, and his 2-month-old grandson, Ryder, have “had a positive effect” on the 76 year-old actor.

“Michael is obsessed with Lua and tries to see her whenever he can,” the insider added. “He’s certainly an entertaining grandfather and takes such pleasure from making her laugh by pulling a silly face, playing the tickle spot and chase. He turns into a big kid himself and feels young again.”

“Michael couldn’t wait to meet his new grandson, Ryder,” the source continued. “His heart melted when he first set eyes on him. Ryder is definitely a ‘Douglas’ – you can already see similarities between him and Michael.”

Though Douglas has not retired from acting, he’s become more “family-focused” since he became a grandfather.

“He continues to be a prominent figure in Hollywood, [but] he has taken step back to spend time with those who are important to him: his loved ones,” the insider explained.

These days, Douglas is also focused on “rebuilding” his relationship with his oldest son Cameron, 42, who shares his two children with his wife, Viviane Thibes. Douglas was  “at the height of his career during Cameron’s childhood,” which meant that he spent much of his time “traveling to different locations” and away from home.

“He regrets not being around for Cameron and has his heart set on making up for lost time, [which includes] spending time with his grandkids, Lua and Ryder,” the source said, adding that the actor is so proud of how far Cameron has come.

“Michael is delighted to see him settled, happy and grounded,” the insider said. “And he thinks Viviane is great. He’s seen such a positive change in Cameron since she came into his life.”

In addition to Cameron, who he had with his first wife Diandra Luker, Douglas is father to Dylan Michael Douglas, 20, and Carys Zeta Douglas, 18, with actress Catherine Zeta-Jones. Douglas tries to be the best father possible at all times, and he’s making his family his No. 1 “priority,” the source concluded.