His second film was Campfire (2004), which won five Ophir Awards including Best Picture, with two, Best Director and Best Screenplay, going to Cedar. For Beaufort (2007), his third film, he received the Silver Bear award for Best Director in the Berlin International Film Festival. Beaufort received an Academy Award nomination for Best Foreign Language Film, the first such nomination for an Israeli film in 24 years. It received four Ophir Awards and was based on Cedar's own experiences during his army service on Israel's border with Lebanon.
Cedar is an Orthodox Jew. His films are known to touch delicate issues of Israeli society. Israeli critic Yair Rave wrote, "One of the reasons I like Cedar's films so much is... his ability to merge the Israeli spirit... with the universal cinematic codes."