Permanently shadowed regions (PSRs) on the Moon are potential reservoirs for water ice, making them hot spots for future lunar exploration. The water ice in PSRs would cause distinctive changes in space weathering there, in particular reduction-oxidation processes that differ from those in illuminated regions. To determine the characteristics of products formed during space weathering in PSRs, the lunar meteorite NWA 10203 with artificially added water was irradiated with a nanosecond laser to simulate a micrometeorite bombardment of lunar soil containing water ice. The TEM results of the water-incorporated sample showed distinct amorphous rims that exhibited irregular thickness, poor stratification, the appearance of bubbles, and a reduced number of npFe⁰. Additionally, EELS analysis showed the presence of ferric iron at the rim of the nanophase metallic iron particles (npFe⁰) in the amorphous rim with the involvement of water. The results suggest that water ice is another possible factor contributing to oxidation during micrometeorite bombardment on the lunar surface. In addition, it offers a reference for a new space weathering model that incorporates water in PSRs, which could be widespread on asteroids with volatiles.