Background
He was the second son of Emperor Louis IV the Bavarian by his first wife Beatrix of Świdnica and a member of the Wittelsbach dynasty. When his father died in 1347, Stephen succeeded him as Duke of Bavaria and Count of Holland and Hainaut together with his five brothers.
Career
The Emperor had acquired Brandenburg, Tyrol, Holland and Hainaut for his House but he had also released the Upper Palatinate for the Palatinate branch of the Wittelsbach in 1329. Louis IV had reunited Bavaria in 1340 but in 1349 the country was divided for the emperor"s sons again into Upper Bavaria, Lower Bavaria-Landshut and Bavaria-Straubing. After the temporary reconciliation of the Wittelsbach with Charles IV, Holy Roman Emperor, who had finally confirmed all Wittelsbach possessions, Stephen joined Charles" expedition to Italy in 1354.
Stephen II was the last son of Emperor Louis IV who was in 1362 absolved from excommunication.
To strengthen his position against Rudolf IV, Duke of Austria he confederated with Bernabò Visconti. Stephen finally renounced Tyrol to the Habsburgs with the Peace of Schärding for a huge financial compensation after the death of Margarete Maultasch in 1369.
Due to the loss of Brandenburg the Bavarian dukes received a financial compensation one more time. He is buried in the Frauenkirche in Munich.