She was regent of Upper Bavaria during the minority of her younger son, Louis IV in 1294–1301.

Matilda took a large part of Upper Bavaria while Rudolf took the cities such as: Ingolstadt, Langenfeld and Rietberg.

Though Matilda had her younger son, Louis partly educated in Vienna and became co-regent of his brother Rudolf I in Upper Bavaria in 1301 with the support of Matilda and her brother King Albert I, he quarreled with the Habsburgs from 1307 over possessions in Lower Bavaria.

A civil war against his brother Rudolf due to new disputes on the partition of their lands was ended in 1313, when peace was made at Munich.

[1] Matilda's son, Louis, defeated his Habsburg cousin Frederick the Fair.