A wafer processing method includes: a protective member placing step of placing a protective member on the face side of a wafer; a shield tunnel forming step of applying a laser beam, which has a wavelength that is transmittable through single-crystal silicon, to areas of the wafer that correspond to projected dicing lines from a reverse side of the wafer, thereby successively forming a plurality of shield tunnels in the wafer, each including a fine pore extending from the reverse side to the face side of the wafer and an amorphous region surrounding the fine pore; and a dividing step of dividing the wafer into individual device chips by etching the shield tunnels according to plasma etching. The pulsed laser beam used in the shield tunnel forming step has a wavelength of 1950 nm or higher.