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 to high-ranking positions as Duke of Carinthia and Margrave of Verona, and after his death in 1123, Engelbert II took over leadership. The next year, Engelbert II transferred control of Istria to his son Engelbert III.