In the summer of 2003 the band went into a studio to write and record new material for a new album, tentatively titled Cigarettes and Valentines.[23] After completing 20 tracks, the master tapes were stolen from the studio. The band, understandably upset, chose not to try to re-create the stolen album, but instead started over with a vow to be even better than before. In this same year, Green Day collaborated with Iggy Pop on two tracks for his album Skull Ring. In addition, they underwent serious "band therapy," engaging in several long talks to work out the members' differences after accusations from Dirnt and Cool that Armstrong was "the band's Nazi"[24] and a show-off bent on taking the limelight from the other band members.
The resulting 2004 album, American Idiot, debuted at #1 on the Billboard charts, the band's first ever album to reach #1, backed by the success of the album's first single, "American Idiot." The album was billed as a "punk rock opera" which follows the journey of the fictitious "Jesus Of Suburbia".[25] Also the album marked a significant growth in the band as musicians. American Idiot won the 2005 Grammy for "Best Rock Album" and the band swept the 2005 MTV music awards, winning a total of seven of the eight awards they were nominated for, including the coveted Viewer's Choice Award.[26]