Xiang Yu retreated to the bank of the Wu River (near present-day He County, Chaohu City, Anhui) and the ferryman at the ford prepared a boat for him to cross the river, strongly encouraging him to do so because Xiang Yu still had the support of the people from his homeland in the south. Xiang Yu said that he was too ashamed to return home and face his people because none of the first 8,000 men from Jiangdong who followed him on his conquests managed to survive. He refused to cross and ordered his remaining men to dismount, asking the ferryman to take his warhorse, Zhui (騅), back home.
Xiang Yu and his men made a last stand against wave after wave of Han forces until only Xiang himself was left alive. Xiang Yu continued to fight on and he slew over 100 enemy soldiers, but he had also sustained several wounds all over his body. Just then, Xiang Yu saw an old friend Lü Matong among the Han soldiers, and he said to Lü, "I heard that the King of Han (Liu Bang) has placed a price of 1,000 gold and the title of "Marquis of Wanhu" (萬戶侯; literally: "marquis of 10,000 households") on my head. Take it then, on account of our friendship." Xiang Yu then committed suicide by slitting his throat with his sword, and a brawl broke out among the Han soldiers at the scene due to the reward offered by Liu Bang, and Xiang Yu's body was said to be dismembered and mutilated in the fight. The reward was eventually claimed by Lü Matong and five others.
After Xiang Yu's death, Western Chu surrendered and China was united under Liu Bang's rule, marking the victory of the Han Dynasty. Liu Bang held a grand state funeral for Xiang Yu in Gucheng (穀城; present-day Pingyin County, Jinan, Shandong), with the ceremony befitting Xiang's title of "Duke of Lu". Xiang Yu's relatives were spared from death, including Xiang Bo, who saved Liu Bang's life at the Feast at Hong Gate, and they were granted titles of marquises.