Disclosed herein is a wafer processing method for dividing a wafer into individual device chips along division lines. The wafer processing method includes a frame supporting step of attaching the wafer to an adhesive tape fixed at its peripheral portion to an annular frame, thereby supporting the wafer through the adhesive tape to the annular frame, a laser processing step of applying a laser beam to each division line to thereby form a strength reduced portion along each division line, and a dividing step of applying a radial tension to the adhesive tape and next applying an external force to the wafer in the condition where the radial tension is kept acting on the adhesive tape, thereby dividing the wafer into the individual device chips along the division lines.