In 1862, Vallon's son, ‘Amsterdam’ returns to the Five Points seeking revenge and retrieves the knife. Having witnessed this, Vallon's young son hides the knife that killed his father and is taken to an orphanage on Blackwell's Island. At the end of the battle, Bill kills Vallon and declares the Dead Rabbits outlawed. In the 1846 slum of the Five Points, two rival gangs, the Protestant Confederation of American Natives, led by William 'Bill the Butcher' Cutting, and the Irish Catholic immigrant Dead Rabbits, led by 'Priest' Vallon, engage in their final battle to determine which faction will hold sway over the territory. It received ten nominations at the 75th Academy Awards, including Best Picture, Best Director for Scorsese and Best Actor for Day-Lewis. It was met with generally positive reviews and Day-Lewis's performance was highly acclaimed. The film was theatrically released in the United States on December 20, 2002, and grossed over $193 million worldwide. Gangs of New York was completed by 2001 but its release was delayed due to the September 11 attacks. Principal photography took place in Cinecittà, Rome and Long Island City, New York City.

Scorsese spent twenty years developing the project until Miramax Films acquired it in 1999. The film is set in 1863, when a long-running Catholic–Protestant feud erupts into violence, just as an Irish immigrant group is protesting against the threat of conscription. Reilly, Henry Thomas, Stephen Graham, Eddie Marsan, and Brendan Gleeson in supporting roles. The film stars Leonardo DiCaprio, Daniel Day-Lewis, and Cameron Diaz, with Jim Broadbent, John C. Gangs of New York is a 2002 American historical drama film directed by Martin Scorsese and written by Jay Cocks, Steven Zaillian, and Kenneth Lonergan, based on Herbert Asbury's 1927 book The Gangs of New York.

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