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".
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On 4 August 2008, citing unnamed sources, Murray Weiss, of the New York Post, first reported that Mary-Kate Olsen had "refused [through her attorney, Michael C. Miller] to be interviewed by federal investigators probing the accidental drug death of her close friend Heath Ledger ... [without] ... immunity from prosecution" and that, when asked about the matter, Miller at first declined further comment. Later that day, after the police confirmed the gist of Weiss's account to the Associated Press, Miller issued a statement denying that Olsen supplied Ledger with the drugs causing his death and asserting that she did not know their source. In his statement, Miller said specifically, "Despite tabloid speculation, Mary-Kate Olsen had nothing whatsoever to do with the drugs found in Heath Ledger's home or his body, and she does not know where he obtained them," emphasizing that media "descriptions [attributed to an unidentified source] are incomplete and inaccurate."
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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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"Some people find their shtick," Ledger reflected on the categorisation of style. "I never figured out who 'Heath Ledger' is on film: 'This is what you expect when you hire me, and it will be recognisable'... People always feel compelled to sum you up, to presume that they have you and can describe you. That's fine. But there are so many stories inside of me and a lot I want to achieve outside of one flat note."