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First off, I just wanted to say that this is the best movie I have seen in a while. It was nice to finally watch one again that felt worth my time.

Anyway, as sad as it is, I also believe Nanashi died at the end. Throughout the movie, he is basically teaching the kid to be more self-sufficient. There is also mention of not being dependent on someone else. By the end of the movie, I got the sense that the boy could fend for himself (still with the help of his totally awesome dog of course). =)

In that final horseback scene, I got the impression that Nanashi was hurt badly, regardless of what he might say to the boy to keep him from worrying. When he asked about the village, I think he knew he was at his limit (he was a trained warrior who would have a good idea of his limits after all). I think he knew he wasn't going to survive if they weren't near the village by that point.

Also, the creators could have just as easily left the blood out of that last scene, but they didn't. And as someone mentioned, it was most likely significant. Also, during that final fight scene, he was obviously bleeding badly from his leg. It could possibly be that his femoral artery was cut. However, it is still anime, and you can never be sure how much blood spray and blood loss is going to be fatal. =)

However, another element that convinces me that Nanashi didn't make it is his past. That last act he performed as a volunteer was a terrible one, and it is not uncommon in anime for a character to obtain redemption for an act like that through self-sacrifice, in this case giving his life to save the boy.

All that said, if they want to make a sequel where he lives, I definitely won't complain. ;)

Edit: I forgot to mention, thanks for the list thrsten. I have seen most of those, but I will certainly check out the ones I have not.

I've got to agree with you... the ending, despite the blood, was very optimistic. Most likely, he survived.

Yes, exactly. The whole point of showing the green vial getting destroyed in the end was to point out that that happened instead of Nanashi's blood spilling in the snow. I mean, he had already killed the bad guy, that final blow could well have been mortal, he would still have accomplished his mission. Instead, we are shown the green fluid spilling from his side vs the blood of his adversary spilling from his belly. That would have made no sense if Nanashi was still going to die. And he did redeem himself for having killed innocents in his youth - by saving another innocent.

Also, of course that the kid still needed him - he was still very small, the only thing his encounter with Nanashi brought him so far (apart from his life...) was learning how to ride a horse. He still needed someone to look after him - just like Nanashi needed someone to do his reading for him and to teach him how to get rid of bad dreams . The encounter had not taught the two of them how to live alone and to not depend on others, on the contrary, the whole thing in the end is to say that there's no way someone would not depend on others, so there's no way someone could live alone. So I'd say that everything points to the idea that Nanashi made it alive in the end.

As to the blood stains in the snow - first, they were not that many, and second, one could interpret that as a bloody path to happiness...

Words, Mr. Sullivan, are precious things, and they are not to be tempered with!

I also agree that the ending was ambiguous and could be left open to interpretation, but I think that's what makes it such a great ending. Although, if you look closely at the boy's face, you'll notice his expression changes slightly to one of sadness before they ride off. (kudos to the director and animators here.)

"Zombies, man.....they creep me out."