Physical experiments were conducted to examine the influence of adverse currents on the propagation of shallower water waves and their impact on the evolution of nonlinear wave shapes. Irregular waves, characterized by varying initial peak periods and amplitudes, were generated in a physical wave flume equipped with a bottom slope of 1/20. Three groups of spatially varying opposing currents were generated in the flume and interacted with the aforementioned wave trains. Experimental results confirm that strong opposing currents can significantly intensify local wave nonlinearity, thereby further influencing the deformation characteristics of waves. In contrast, a weak opposing current (without wave-blocking) has a negligible effect. Bicoherence analysis revealed that the degree of phase coupling among triads of waves increased with an elevated current velocity before wave-blocking. Nevertheless, during partial wave-blocking, the degree of phase coupling was seemingly weakened by an increase in opposing current. Moreover, the influence of a co-existing current in the formation of extreme waves was recognized. The study confirms that adverse currents notably affect extreme wave steepness and extreme wave skewness, with a negligible impact on extreme wave asymmetry. As a result, empirical formulas modified by current effects are presented, describing certain key nonlinear wave shapes as functions of the local Ursell number.