Abstract: Disclosed herein is a wafer processing method for dividing a wafer into a plurality of individual devices along a plurality of crossing division lines. The wafer is composed of a substrate and a functional layer formed on the front side of the substrate. The division lines are formed on the front side of the functional layer. A laser beam having a transmission wavelength to the substrate is applied to the wafer from the back side thereof to detect the height of an interface between the functional layer and the substrate in an area corresponding to each division line. The depth of cut by a cutting blade for cutting the substrate is next set according to the height detected above.