After Brokeback Mountain, Ledger costarred with fellow Australian Abbie Cornish in the 2006 Australian film Candy, an adaptation of the 1998 novel Candy: A Novel of Love and Addiction, as young heroin addicts in love attempting to break free of their addiction, whose mentor is played by Geoffrey Rush; for his performance as sometime poet Dan, Ledger was nominated for three "Best Actor" awards, including one of the Film Critics Circle of Australia Awards, which both Cornish and Rush won in their categories. Shortly after the release of Candy, Ledger was invited to join the Academy of Motion Picture Arts and Sciences. As one of six actors embodying different aspects of the life of Bob Dylan in the 2007 film I'm Not There, directed by Todd Haynes, Ledger "won praise for his portrayal of 'Robbie [Clark],' a moody, counter-culture actor who represents the romanticist side of Dylan, but says accolades are never his motivation". Posthumously, on 23 February 2008, he shared the 2007 Independent Spirit Robert Altman Award with the rest of the film's ensemble cast, its director, and its casting director.
"You know when you see the preachers down South? And they grab a believer and they go, 'Bwoom! I touch you with the hand of God!' And they believe so strongly, they're on the ground shaking and spitting. And fuck's sake, that's the power of belief... Now, I don't believe in Jesus, but I believe in my performance. And if you can understand that the power of belief is one of the great tools of our time and that a lot of acting comes from it, you can do anything."
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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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^ Gemma Jones and Janet Fife-Yeomans (31 March 2008). "Did Heath Ledger Father a Secret Love Child?". The Daily Telegraph. Australia. Retrieved 25 July 2008. The April will lists only [US]US$145,000 in assets and names the late actor's father, Kim, mother Sally Bell, sister Kate Ledger and half sisters Olivia Ledger and Ashleigh Bell as the only beneficiaries. The New York documents also acknowledge Matilda Rose, as Ledger's only known child, as an interested party.
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On 31 March 2008, stimulating another controversy pertaining to Ledger's estate, Gemma Jones and Janet Fife-Yeomans published an "Exclusive" report, in The Daily Telegraph, citing Ledger's uncle Haydn Ledger and other family members, who "believe the late actor may have fathered a secret love child" when he was 17, and stating that "If it is confirmed that Ledger is the girl's biological father, it could split his multi-million dollar estate between ... Matilda Rose ... and his secret love child." A few days later, reports citing telephone interviews with Ledger's uncles Haydn and Mike Ledger and the family of the other little girl, published in OK! and Us Weekly, "denied" those "claims", with Ledger's uncles and the little girl's mother and stepfather describing them as unfounded "rumors" distorted and exaggerated by the media.
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From 2000 to 2005, he starred in supporting roles as Gabriel Martin, the eldest son of Benjamin Martin (Mel Gibson), in The Patriot (2000), and as Sonny Grotowski, the son of Hank Grotowski (Billy Bob Thornton), in Monster's Ball (2001); and in leading or title roles in A Knight's Tale (2001), The Four Feathers (2002), The Order (2003), Ned Kelly (2003), Casanova (2005), The Brothers Grimm (2005), and Lords of Dogtown (2005). In 2001, he won a ShoWest Award as "Male Star of Tomorrow".
According to the police, Wolozin, who had arrived early for a 3:00 pm appointment with Ledger, called Ledger's friend Mary-Kate Olsen for help. Olsen, who was in California, directed a New York City private security guard to go to the scene. At 3:26 pm, "less than 15 minutes after she first saw him in bed and only a few moments after the first call to Ms. Olsen", Wolozin telephoned 9-1-1 "to say that Mr. Ledger was not breathing". At the urging of the 9-1-1 operator, Wolozin administered CPR, which was unsuccessful in reviving him.
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Released in July 2008, The Dark Knight broke several box office records and received both popular and critical accolades, especially with regard to Ledger's performance as the Joker. Even film critic David Denby, who does not praise the film overall in his pre-release review in The New Yorker, evaluates Ledger's work highly, describing his performance as both "sinister and frightening" and Ledger as "mesmerising in every scene", concluding: "His performance is a heroic, unsettling final act: this young actor looked into the abyss." Attempting to dispel widespread speculations that Ledger's performance as the Joker had in any way led to his death (as Denby and others suggest), Ledger's co-star and friend Christian Bale, who played opposite him as Batman, has stressed that, as an actor, Ledger greatly enjoyed meeting the challenges of creating that role, an experience that Ledger himself described as "the most fun I've ever had, or probably ever will have, playing a character". Terry Gilliam also refuted the claims that playing the Joker made him crazy, calling it "absolute nonsense" and going on to say, "Heath was so solid. His feet were on the ground and he was the least neurotic person I've ever met."
Ledger died on the afternoon of 22 January 2008 due to a drug overdose. A few months before his death, Ledger had finished filming his performance as the Joker in The Dark Knight. At the time of his death, The Dark Knight was in its editing-phase and The Imaginarium of Doctor Parnassus was in the midst of filming, in which he was playing his last role as Tony. His untimely death also affected the subsequent promotion of The Dark Knight. His role as the Joker in The Dark Knight earned him widespread acclaim and popularity from both fans and critics alike, and is often regarded as one of the greatest performances in film history. Ledger also received numerous posthumous accolades for his performance in The Dark Knight, including the Academy Award for Best Supporting Actor, a Best Actor International Award at the 2008 Australian Film Institute Awards, the 2008 Los Angeles Film Critics Association Award for Best Supporting Actor, the 2009 Golden Globe Award for Best Supporting Actor – Motion Picture, and the 2009 BAFTA Award for Best Supporting Actor.
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^ "A Place To Be: Reflections Of Nick Drake". A Place To Be. Archived from the original on 18 February 2009. Retrieved 18 March 2008. A Place To Be: a collection, a celebration, in film, photography, painting, drawing and prose, of the impact the music of Nick Drake has had on other artists ("Introductory film" includes excerpts of the music video, Black Eyed Dog, by Heath Ledger, among others.)