A cease-fire deal between Mr. Sadr's representatives in the Iraqi government and members of the leading Shiite bloc aims to end weeks of fierce battles in Sadr City.
Residents are moving back to Saidiyah, a neighborhood once racked by sectarian violence that is now guarded by a 12-foot-high wall.
At least 47 US soldiers were killed in Iraq in April, making it the deadliest month since September. Many of the casualties are a result of the recent assault on the Mahdi Army.
Bombings this week in Sunni areas of Iraqi have killed more than 100 people.
US forces hope that the wall will reduce militia attacks, allow for reconstruction.
In an interview, a member of the Islamic Army of Iraq speaks of his group's long-term goals.
While the Sunni heartland has largely turned against Al Qaeda in Iraq, insurgents are still doing battle in the 'wild' reaches of the province.