The suspect was identified as 26-year-old Burgon Sealy Jr. of Middletown, Delaware.
Sealy walked out of the home where he had been holed up since the fatal shooting of the trooper a day earlier, "engaged officers" and was shot by law enforcement and died at the scene, police said in a statement
State police released the following statement shortly after 10 a.m.:
At 9:17 a.m., the male suspect exited the residence and engaged police. The suspect was then shot by law enforcement. He was pronounced dead at the scene at 9:29 a.m....
Residents in the area remain evacuated. The Odessa Fire Company, located at 304 Main Street in Odessa, has opened its facility to temporarily house the evacuated residents of Brick Mill Farms Development.
Sealy had been barricaded inside the home since Wednesday afternoon, not long after Cpl. Stephen J. Ballard, 32, was shot several times after he approached a vehicle in the parking lot of a Wawa convenience store near Bear.
Responding troopers arrived at the scene and took one of the suspects into custody without incident. The other suspect fled on foot prior to their arrival.
Ballard was rushed to an area hospital, where he succumbed to his injuries.
During a news conference on Thursday, officials released more details about the incident.
Video: Police hold news conference on trooper's death
Officials say it all began when Ballard spotted a suspicious red Dodge Charger occupied by two suspects in the Wawa parking lot. Police have not said why the vehicle was thought to be suspicious.
Ballard made contact with the driver, then made contact with Sealy, who was in the front passenger seat.
Sealy told Ballard he had arrived at the Wawa in a gray Honda Accord, which was also in the parking lot.
Ballard asked Sealy to step out of the vehicle, and then there was a struggle. Police say that's when Sealy fired at Ballard with a handgun he had in his waistband.
Ballard attempted to run for cover behind a parked vehicle. Police say Sealy pursued him, and fired at Ballard, hitting him in the upper body.
With Ballard on the ground, police say Sealy approached him and then fired multiple rounds at close range, striking Ballard again in the upper body.
Sealy fled in the Honda then called family members, police say, and said he shot a trooper at the Wawa. His family immediately called police.
With that information, police were able to track Sealy down to his home in the Brick Mill Farms development in Middletown, Delaware.
Police arrived, secured a perimeter, and attempted to make contact with Sealy. He then fired multiple rounds at the officers from inside the home.
Video: Aerial view during search for suspect in Middletown, Delaware
He was the only one inside.
When Sealy stopped communicating with officers at about 8:22 p.m., the ordnance unit used an explosive breaching charge on the front door.
Still, Sealy failed to respond and the standoff stretched into the overnight hours.
"It was scary, like gunshots all night, through the whole night. We didn't get any sleep," said resident Ashley Pennybacker.
At around 4 a.m. Thursday, officers reported hearing gunshots from inside the home. Again, police say they tried to make contact, but got no response.
Then, at 9:17 a.m., Sealy emerged from the home, engaged police, and was shot by officers. Rescuers on the scene began efforts to save his life, but he was pronounced dead at 9:22 a.m.
VIDEO: Police escort for fallen Del. trooper
Ballard had been with the Delaware State Police for more than eight years and was assigned to patrol at Troop 2, Glasgow.
Trooper Ballard's body was transported from the Medical Examiner's Office late Thursday morning to Congo Funeral Home in Wilmington.
The Associated Press contributed to this report.