In the same year his elder brother Henry IV was created Duke of Carinthia and Margrave of Verona, and upon his death in 1123 Engelbert II succeeded him. The next year he ceded Istria to his son Engelbert III.
Around the same time, Henry IV's older brother was appointed Duke of Carinthia and Margrave of Verona, and after his passing in 1123, Engelbert II assumed control. The next year, Engelbert II transferred Istria to his son Engelbert III.