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The opening of the Suez Canal in 1869 facilitated direct trade and communications with Spain.

The city's growing wealth and education attracted indigenous people, Chinese, Indians, Latinos, and Europeans from the surrounding provinces The Americans defeated the First Philippine Republic and captured President Emilio Aguinaldo, who declared allegiance to the United States on April 1, 1901.

As nilà products were distributed in other places, people came to refer to the area as Sa may Nilà, Tagalog for "the place where there are nilàs".

The word nilà itself is probably from the Sanskrit nila (नील), meaning "indigo tree".

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The Tondo district was the traditional capital of the empire, and its rulers were sovereign kings, not mere chieftains.The victorious Spaniards made Manila, the capital of the Spanish East Indies and of the Philippines, which their empire would control for the next three centuries.Manila became famous during the Manila–Acapulco galleon trade, which lasted for three centuries and brought goods from Europe, Africa and Hispanic America across the Pacific Islands to Southeast Asia (which was already an entrepôt for goods coming from India, Indonesia and China), and vice versa.It established a new dynasty under the local leader, who accepted Islam and became Rajah Salalila or Sulaiman I.He established a trading challenge to the already rich House of Lakan Dula in Tondo.

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