A wafer processing method includes preparing a holding table having a blade clearance portion formed therein so as to correspond to a notch of a wafer, holding the wafer by the holding table so as to make the notch of the wafer correspond to the blade clearance portion of the holding table, reducing the diameter of the wafer by cutting the wafer by a cutting blade along an outer peripheral edge of the wafer in a state in which an end of the cutting blade is positioned below the holding surface of the holding table and therefore removing at least a part of the notch portion, and forming a second notch in the wafer by cutting the wafer in a thickness direction by the cutting blade along the blade clearance portion of the holding table.