A wafer processing method for processing a wafer includes an annular groove forming step, a close contact making step, a protective member fixing step, a grinding step, and a peeling step. The wafer has a device area and a peripheral marginal area surrounding the device area on the front side, and devices each having asperities are formed in the device area. In the annular groove forming step, an annular groove is formed on the front side of the wafer along the inner circumference of the peripheral marginal area. In the close contact making step, the device area and the annular groove are covered with a protective film, and the protective film is bring into close contact with the front side of the wafer.