Shadow education, defined as private supplementary tutoring provided beyond the mainstream educational systems and formal learning spaces, has become a widespread phenomenon throughout the world. The present study adopted a hermeneutic phenomenological research approach to investigate the status and effects of shadow education practice in general education and teaching the English language in Iran. Through the purposive sampling technique, 10 ELT teachers and 10 EFL college students who had the experience of being engaged in such teaching practices and learning experiences were selected and interviewed. After conducting a thematic analysis of the transcribed data, the researcher obtained the following themes with regard to the nature and influence of shadow education in teaching English in Iran: (1) shadow education compensating for inefficiency in teaching, (2) shadow education providing more student-centered and humanistic teaching methods, (3) shadow education facilitating access to higher education, (4), shadow education creating business opportunities and (5) shadow education perpetuating social inequalities in the society. Finally, it was suggested that due to its tremendous growth and ubiquitous presence along with the mainstream curriculum in educational ecology, shadow education must receive appropriate attention from educational authorities, teachers and researchers in the country.