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In Shutter Island, it's hard to understand the ending because it's quite ambiguous.

I think, a while before the ending of the movie Teddy confessed to Dr. Cawley as, he's Andrew Laeddis and he killed his wife. Then, he walked with Chuck in the final scene.

What's the significance of this scene?

Was Teddy really cured? If he was cured, why didn't they just arrest him for the crime of killing his wife?

What's the significance of Dr. Cawley's eye gesture at the final scene?

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A) This is 2 separate questions, it seems. and B) this is very similar –  TylerShads Aug 1 '12 at 16:01
    
You may be right, however as @Morpheus mentioned in the answer, he may be cured. So, why didn't they accept the confession and just arrest him. Further, the question you've mentioned didn't address about Dr.Cawley's eye gesture IMO. –  Vijin Paulraj Aug 1 '12 at 16:15
    
Can you remind me what the gesture was? –  iandotkelly Aug 1 '12 at 17:16
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3 Answers

up vote 2 down vote accepted

My answer is just the opinion of me, and not based on hard proof. That said, I think Teddy was really cured, but he just pretended that he was still investigating the case. That way, he wouldn't get arrested for killing his wife and could just "role-play" his life again and again without arousing any suspicion.

For your second question, I think Teddy just made his game (pretending he wasn't cured) seem more realistic. His conversation with Chuck before getting up and walking away convinced Chuck that Teddy really is not cured. That may be the reason Chuck looked at the doctors(?) and slowly shakes his head while maintaining eye contact.

Another theory is that (for your 2nd question), Teddy just confessed his cure to Chuck in that conversation before getting up and walking away. But Chuck decided not to tell the doctors(?) of Teddy's cure. 'Cause if he did that, Teddy would definitely be locked away. Teddy's constant role-playing with Chuck may developed some connection (pity? friendship?) between them- and Chuck decided not to give up Teddy.

This is just my opinion and the way I interpreted it and may be wrong.

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was Teddy really cured?

No, in a experimental procedure the psychologist let him play out his fantasy in order to reveal the truth about his crime, but he understands it for the brief moment and comes back to square 1 the next day.

the significance of Dr. Cawley's eye gesture at the final scene?

Like i said the procedure was experimental and it failed the next day (maybe because of his mental condition) so the assistant share a smoke with him to confirm if he is able to come in terms with reality and makes a gesture to the doctor saying "needs more time".

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According to me, Andrew has started his game again. He isn't completely cured.

You could hear the doctor says that he was hearing this same story for number of times.

It means that Andrew is still mentally retarded and he started his same investigation story again

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