Jurors were shown a video clip of Michael Adebolajo, one of the men suspected of killing soldier Lee Rigby, speaking while holding bladed weapons in his bloodied hands.
Speaking into the camera he said: "The only reason we've killed this man today is because Muslims are dying daily by British soldiers.
"This British soldier is one - he is an eye for an eye and a tooth for a tooth.
"By Allah we swear by the Almighty Allah we will never stop fighting you until you leave us alone."
A warning that this footage contains graphic images:
Michael Adebolajo and Michael Adebowale deny the charges.
The trial of two men accused of killing soldier Lee Rigby will continue today.
Michael Adebolajo and Michael Adebowale are charged with murdering the Fusilier as he walked back to Woolwich Barracks in May.
Soldier Lee Rigby was murdered within yards of Mulgrave Primary School, where children were returning from a visit to the library, the court heard.
Members of the public turned them back to avoid the "awful" scene, the jury were told.
Video footage of Lee Rigby being struck by a car was shown to the jury at the Old Bailey.
The clip shows a Vauxhall Tigra, which prosecutors claim was being driven by Adebolajo, swerve across Artillery Place in Woolwich, south-east London, and hit the soldier.
A warning that this footage shows the moment before Lee Rigby was hit by the vehicle:
Soldier Lee Rigby entered Tower Gateway DLR station at 1.35pm on the day he was killed, wearing a Help for Heroes hoodie and carrying an Army day sack, the prosecution said. He travelled to Woolwich Arsenal DLR and walked to Artillery Place.
The trial of the murder of Fusilier Lee Rigby has been adjourned and the jury sent home until Monday.
Pros says Adebolajo told police " my intention was to hurt military only. He was in his kit, in his uniform coming in & out of the barracks"
Jurors were shown pictures of the bloodied weapons that the men allegedly used, and the 9.4mm Dutch calibre revolver that was in their possession.
Prosecutor Richard Whittam QC told the court that Adebolajo made a number of comments after he was shot by police.
These included: "I am a Muslim extremist, this may be the only chance you meet one."
"Your people have gone to Afghanistan and raped and killed our women, I am seeking retribution, I wouldn't stoop so low as to rape and kill women."
"I thank the person who shot me, because it is what Allah would have wanted."
"I love Allah more than my children."