The modulation instability (MI) is a universal mechanism that is responsible for the disintegration of weakly nonlinear narrow-banded wave fields and the emergence of localized extreme events in dispersive media. The instability dynamics is naturally triggered, when unstable energy side-bands located around the main energy peak are excited and then follow an exponential growth law. As a consequence of four wave mixing effect, these primary side-bands generate an infinite number of additional side-bands, forming a triangular side-band cascade. After saturation, it is expected that the system experiences a return to initial conditions followed by a spectral recurrence dynamics. Much complex nonlinear wave field motion is expected, when the secondary or successive side-band pair that are created are also located in the finite instability gain range around the main carrier frequency peak. This latter process is referred to as higher-order MI. We report a numerical and experimental study that confirm observation of higher-order MI dynamics in water waves. Furthermore, we show that the presence of weak dissipation may counter-intuitively enhance wave focusing in the second recurrent cycle of wave amplification. The interdisciplinary weakly nonlinear approach in addressing the evolution of unstable nonlinear waves dynamics may find significant resonance in other nonlinear dispersive media in physics, such as optics, solids, superfluids and plasma.