He was the son and heir of Count Eberhard II and his wife, Irmgard of Berg.

This necessitated conflict with Bishop Ludwig II of Münster, as well as the Archbishop of Cologne, Henry II of Virneburg, who also dominated the neighboring Duchy of Westphalia.

When Bishop Ludwig II marched into Hamm in 1323, he fell into Engelbert's hands and was released only after paying 5,000 silvermarks, a very high ransom.

A short time later, Engelbert II switched his support to Ludwig IV, putting the Archbishop under such pressure, he was obliged to request a truce.

Count Engelbert II granted the city of Bochum its town charter at Blankenstein Castle in 1321.