Confederate Retreat from Gettysburg: The armies stared at one another in a heavy rain across the bloody fields on July 4, the same day that the Vicksburg garrison surrendered to Maj. Gen. Ulysses S. Grant. Lee had reformed his lines into a defensive position on Seminary Ridge the night of July 3, evacuating the town of Gettysburg. The Confederates remained on the battlefield, hoping that Meade would attack, but the cautious Union commander decided against the risk, a decision for which he would later be criticized. Both armies began to collect their remaining wounded and bury some of the dead. A proposal by Lee for a prisoner exchange was rejected by Meade.

Lee started his Army of Northern Virginia in motion late the evening of July 4 towards Fairfield and Chambersburg. Cavalry under Brig. Gen. John D. Imboden was entrusted to escort the miles-long wagon train of supplies and wounded men that Lee wanted to take back to Virginia with him, using the route through Cashtown and Hagerstown to Williamsport, Maryland. Meade's army followed, although the pursuit was half-spirited. The recently rain-swollen Potomac trapped Lee's army on the north bank of the river for a time, but when the Federals finally caught up, the Confederates had forded the river. The rear-guard action at Falling Waters on July 14 added some more names to the long casualty lists, including General Pettigrew, who was mortally wounded.

In a brief letter to Maj. Gen. Henry W. Halleck written on July 7, Lincoln remarked on the two major Union victories at Gettysburg and Vicksburg. He continued:

Now, if Gen. Meade can complete his work so gloriously prosecuted thus far, by the literal or substantial destruction of Lee's army, the rebellion will be over.
Halleck then relayed the contents of Lincoln's letter to Meade in a telegram. Despite repeated pleas from Lincoln and Halleck, which continued over the next week, Meade did not pursue Lee's army aggressively enough to destroy it before it crossed back over the Potomac River to safety in the South. The campaign continued into Virginia with light engagements until July 23, in the minor Battle of Manassas Gap, after which Meade abandoned any attempts at pursuit and the two armies took up positions across from each other on the Rappahannock River.