This application provides an instruction processing method and a chip. The method includes sending, by the thread unit, a search instruction to the search engine unit. The search instruction includes a data address and a first search field, and the thread unit switches from a RUN state to a WAIT state. The method also includes receiving, by the thread unit, data and a program counter that are sent by the search engine unit. The thread unit switches from the WAIT state to the RUN state.