An optical device wafer processing method for dividing an optical device wafer along a plurality of division lines to obtain a plurality of individual device chips includes applying a laser beam to a wafer substrate along each division line to thereby form a laser processed groove along each division line, and next forming a V groove along each laser processed groove on the optical device wafer by using a cutting blade having a V-shaped tip in the condition where each laser processed groove is removed by the cutting blade. A crack is formed so as to extend from the bottom of each laser processed groove due to a load applied from the cutting blade, thereby dividing the optical device wafer into the individual device chips. The depth of each laser processed groove is set smaller than the depth of cut by the cutting blade.