There is provided a method of processing a wafer having devices formed in respective areas on a face side thereof that are demarcated by a plurality of crossing projected dicing lines on the face side. The method of processing a wafer includes a wafer unit forming step of forming a wafer unit having a wafer, a tape, and an annular frame, a dividing step of dividing the wafer along the projected dicing lines into a plurality of device chips, a pick-up step of picking up one at a time of the device chips from the wafer unit, and a measuring step of measuring the device chip picked up in the pick-up step. The method also includes a distinguishing step, before the pick-up step, of inspecting properties of the devices to distinguish acceptable devices and defective devices among the devices and storing distinguished results.