An object of the invention is to provide a granulation method and a granulation apparatus that can reduce the manufacturing costs of pellets. There is provided a granulation method which uses an underwater cutting (UWC) device 107 that cuts a medium to be processed extruded from holes of a die 106 by using cutter blades provided in a circulation box 109 and conveys the cut pellets from the circulation box 109 while cooling the cut pellets by pellet cooling/transport water (PCW). The granulation method includes circulating the PCW and stopping the circulation of the PCW after pushing the cutter blades against the die 106 while rotating the cutter blades, before the start of the granulation; storing a predetermined amount of PCW in the circulation box 109 by discharging the PCW; and heating the PCW, which is stored in the circulation box 109, up to 69° C. or more.