On 8 December 2004, the band's website reopened with an exclusive video entitled "Rock It". Along with the music video, there was an announcement of a new album on the way, which would be produced by Danger Mouse. A talent contest entitled Search for a Star was also launched on 15 December 2004, allowing fans to send in a minute-long clip of video or audio or an image file. A viral marketing project named Reject False Icons was formed criticizing modern pop figures.
The first single from the album was "Feel Good Inc.", released as an EP in Japan and as a CD single in Europe and Australia. The single entered the UK Singles Chart at #22, several weeks before the CD single was released due to the single being released as a 7" vinyl in April, and new charts regulations included sales at online music stores, where the song had been available since 22 March. "Feel Good Inc." managed to reach #2 in the UK Singles Chart the week it was released, being the band's highest ever positioned single up to that point in time. The single stayed in the top ten for eight consecutive weeks. In the United States, it peaked at #14. The song also garnered a Record of the Year nomination for the 2006 Grammy Awards later that year. It was later included in the popular Playstation 2 title SingStar, a game where players attempt to sing along karaoke style. It was also recently included on Activision´s Guitar Hero 5 and was released as downloadable content on Harmonix and MTV Games' Rock Band.
The album, Demon Days, was released on 11 May 2005 in Japan, 23 May in the United Kingdom and Australia, and on 24 May in the United States. The album debuted at #1 on the UK Albums Chart, but fell as low as #29 in just seven weeks. However, as the music video for the second single "DARE" started getting played on MTV and other music channels, Demon Days rose up to the top 10 again. "DARE" was released on 29 August 2005 in the UK, where it debuted at #1. A Japanese EP followed on 7 September. "DARE" eventually reached #87 in the United States, also becoming a Top 10 hit on the Modern Rock listings. Shortly afterwards, Gorillaz contributed an exclusive track entitled "Hong Kong" to the charity compilation Help!: A Day in the Life released on 10 September 2005.
The third single off Demon Days was "Dirty Harry", which had already been released as a promotional single earlier that year. It was released in the United Kingdom on 21 November 2005. On its first week, it charted at #6. The release of the single raised the album once again back up to the top 10. The fourth and final single was the double A-side, "Kids with Guns"/"El Mañana". It was released in the UK on 10 April 2006. Unlike its Top 10 predecessors, "Kids With Guns" / "El Mañana" reached #27 upon its release in the UK. A week later, the single had fallen out of the Top 40 in the UK (see 2006 in British music). By the end of 2005,Demon Days had sold over a million copies in the UK, making it the UK's fifth best selling album of 2005. Demon Days has since gone five times platinum in the UK, double platinum in the United States, triple platinum in Australia and has sold over 6 million copies worldwide.
Plans were unveiled for Gorillaz to go on a holographic world tour in 2007 and 2008. The cartoon members would be shown as holograms on stage using Musion Eyeliner technology, giving them a life-like appearance on stage. The holograms were first used at the 2005 MTV Europe Music Awards on 3 November 2005 and again at the 2006 Grammy Awards on 8 February 2006 with the addition of a virtual Madonna, where the band played a pre-recorded version of "Feel Good Inc." However, the tour was eventually called off due to budget issues. Jamie Hewlett has stated that "...it was extremely expensive, extremely difficult, a million and one things can go wrong, every second that the thing's playing."
In 2005, a set of Gorillaz figures were released by Kidrobot to coincide with the release of Demon Days. Two variations of the set were released, known as the Red and Black editions, and a limited edition Noodle from the music video for "DARE" was also released. Three new sets of Gorillaz vinyl figures were released in 2006. The Basic set was released on 16 October 2006 and the 2-tone and White edition sets were released on 2 November 2006.
On 21 September 2006, the main lobby of Kong Studios was destroyed for unknown reasons and a teaser clip forSlowboat to Hades appeared and could be played on a TV screen. The Phase Two: Slowboat to Hades DVD was released on 30 October in the United Kingdom, and 31 October in the United States. The official Gorillaz illustrated autobiography, titled Rise of the Ogre, was released on 31 October 2006 in the United Kingdom, and 2 November in the United States. D-Sides, a compilation of B-side and remixes, was released on 19 November 2007 in the UK and on 20 November 2007 in the US.
Hopes for a Gorillaz film were revived in 2006 when Hewlett stated that they would be producing the film on their own. American film producer and Weinstein Company co-chairman, Harvey Weinstein, was also said to be collaborating with Albarn and Hewlett. In a September 2006 interview with Uncut magazine, Albarn was reported saying "[Gorillaz] has been a fantastic journey which isn't over, because we're making a film. We've got Terry Gilliam involved. But as far as being in a big band and putting pop music out there, it's finished. We won't be doing that any more." In an interview with the Gorillaz-Unofficial fansite, Jamie Hewlett and Cass Browne revealed that in the film the band members will act as other characters presenting a new story, instead of playing themselves. Hewlett also said that the film's soundtrack will be the next Gorillaz album. "The soundtrack will be the third album. Damon will do the soundtrack, which will be the soundtrack, which will be the third album." As of April 2007, Cass Browne is still finishing the script and Albarn has said that he hopes production of the film will begin in September 2007. No further news was heard about the film until February 2008 when, in an interview with Gorillaz-Unofficial, Hewlett said "Ultimately we didn't think that feel we're in a position to make the kind of movie we want to make with Gorillaz at the moment. [...] But I'd still like to make a full, lavishly-animated Gorillaz movie someday."
On 24 October 2007, the official Gorillaz fansite announced that a documentary film about the Gorillaz, titled Bananaz, would be released. The film, directed by Ceri Levy, documents the previous seven years of the band. The film was released online on the Babelgum website on 20 April 2009 followed by the DVD release on 1 June 2009.
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