Wave transformation is an intrinsic dynamic process in coastal areas. An essential part of this process is the variation of water depth, which plays a dominant role in the propagation features of water waves, including a change in wave amplitude during shoaling and de-shoaling, breaking, celerity variation, refraction and diffraction processes. Fundamental theoretical studies have revolved around the development of analytical frameworks to accurately describe such shoaling processes and wave group hydrodynamics in the transition between deep- and shallow-water conditions since the 1970s. Very recent pioneering experimental studies in state-of-the-art water wave facilities provided proof of concept validations and improved understanding of the formed extreme waves’ physical characteristics and statistics in variable water depth. This review recaps the related most significant theoretical developments and groundbreaking experimental advances, which have particularly thrived over the last decade.