Ledger had relationships with actresses Lisa Zane, Heather Graham and Naomi Watts. In 2004, he met and began dating actress Michelle Williams on the set of Brokeback Mountain. Their daughter, Matilda Rose, was born on 28 October 2005 in New York City. Matilda's godparents are Brokeback co-star Jake Gyllenhaal and Williams' Dawson's Creek co-star Busy Philipps. In January 2006, Ledger put his residence in Bronte, New South Wales, up for sale, and returned to the United States, where he shared a house with Williams, in Boerum Hill, Brooklyn, from 2005 to 2007. In September 2007, Williams' father confirmed to Sydney's The Daily Telegraph that Ledger and Williams had ended their relationship. After Ledger's death, news outlets reported that his drug abuse had prompted Williams to request that he move out of the apartment they shared in Brooklyn.
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Ledger received "Best Actor of 2005" awards from both the New York Film Critics Circle and the San Francisco Film Critics Circle for his performance in Brokeback Mountain, in which he plays Wyoming ranch hand Ennis Del Mar, who has a love affair with aspiring rodeo rider Jack Twist, played by Jake Gyllenhaal. He also received a nomination for Golden Globe Best Actor in a Drama and a nomination for Academy Award for Best Actor for this performance, making him, at age 26, the ninth-youngest nominee for a Best Actor Oscar. In The New York Times review of the film, critic Stephen Holden writes: "Both Mr. Ledger and Mr. Gyllenhaal make this anguished love story physically palpable. Mr. Ledger magically and mysteriously disappears beneath the skin of his lean, sinewy character. It is a great screen performance, as good as the best of Marlon Brando and Sean Penn." In a review in Rolling Stone, Peter Travers states: "Ledger's magnificent performance is an acting miracle. He seems to tear it from his insides. Ledger doesn't just know how Ennis moves, speaks and listens; he knows how he breathes. To see him inhale the scent of a shirt hanging in Jack's closet is to take measure of the pain of love lost."
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Ledger was quoted in January 2006 in Melbourne's Herald Sun as saying that he heard that West Virginia had banned Brokeback Mountain, which it had not; actually, a cinema in Utah had banned the film. He had also referred mistakenly to West Virginia's having had lynchings as recently as the 1980s, but state scholars disputed his statement, observing that, whereas lynchings did occur in Alabama as recently as 1981, according to "the director of state archives and history" quoted in The Charleston Gazette, "The last documented lynching in West Virginia took place in Lewisburg in 1931."
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In their New York Times interview, published on 4 November 2007, Ledger told Sarah Lyall that his recently completed roles in I'm Not There (2007) and The Dark Knight (2008) had taken a toll on his ability to sleep: "Last week I probably slept an average of two hours a night. ... I couldn't stop thinking. My body was exhausted, and my mind was still going." At that time, he told Lyall that he had taken two Ambien pills, after taking just one had not sufficed, and those left him in "a stupor, only to wake up an hour later, his mind still racing".
^ Michelle Nichols (29 October 2008). "Elvis Ranked Top-earning Dead Celebrity". Thomson Reuters. Reuters.com. Retrieved 10 December 2008. Forbes.com said it spoke to experts and sources inside the dead celebrities' estates and researched gross earnings, before taxes, management fees and other costs, from the period of October 2007 to October 2008 to come up with the rankings. Based on its estimates, Nichols reports, Forbes.com ranks Ledger as third among the world's highest-earning deceased celebrities for that year, following Elvis Presley (1) and Charles M. Schulz (2).