To provide a wafer processing method which can reduce strength degradation of a wafer when the wafer is circle cut.

The wafer processing method of circularly cutting an outer peripheral part 15 of a wafer 11 by rotating the wafer 11 with a cutting blade cut into the outer peripheral part 15 of the wafer 11 comprises a first cut step of rotating the wafer 11 with a first cutting blade 20 cut into the wafer 11 so as to form a circular outer peripheral wall at the outer peripheral part 15 of the wafer 11, and a second cut step of polishing, after performing the first cut step, the circular outer peripheral wall by a second cutting blade 20A including abrasive grains finer than those included in the first cutting blade 20 and removing cutting strain distribution formed on the circular outer peripheral wall in the first cut step.