The generation of extreme waves in the Agulhas Current Retroflection as the result of strong wave-current interaction is examined. High-resolution simulations with two third-generation wave models are performed considering ocean surface currents for two years and six months. The study is made with high-resolution SWAN (Simulating Waves Nearshore) nested grids which use the boundary conditions from the outer WAM (Wave Advanced Modeling) grid. Surface current velocities of mesoscale eddies influence surface wave properties and wave energy. The effects of the current speed on the wave spectral shapes are explored inside the eddies and in their vicinity. The numerical results show that in the interior of the eddies the extreme wave parameters can reach high values as well as the probability of occurrence of abnormal waves. •The generation of extreme waves in strong wave-current interaction is studied.•High-resolution simulations with two third-generation wave models are performed for two years and six months.•Surface current velocities of mesoscale eddies influence surface wave properties and wave energy.•The effects of the current speed on the wave spectral shapes are explored inside the eddies and in their vicinity.•The numerical results show that in the interior of the eddies the extreme wave parameters can reach high values.